Jakarta, CNBC Indonesia – Gold’s fight to get out of the positive zone is still tough. The precious metal collapsed again in early November. Gold also left a negative note in late October 2022 extending its weakness. When calculated at the end of the month, gold plummeted for seven consecutive months.
Gold was actually able to start off brilliantly this year in the first three months. Gold strengthened at the end of January-March.
The impact of the Russo-Ukrainian war even made the gold rate unstoppable, so much so that gold was able to record a 6.2% rise in one month at the end of February. Gold is still up 1.53% on a monthly basis in March.
However, the golden age has passed. The policy of the United States (US) central bank The Federal Reserve (The Fed), which began to raise the benchmark interest rate in mid-March, caused gold to falter.
Gold has also always recorded a weakening in every month since last April-October or for seven consecutive months.
The weakening of gold is not small. Gold fell 2.1% in April, then 3.1% in May, 1.6% in June, 2.3% in July, 3.1% in August, 3% in September and 1.6% in October.
Rupert Rowling, an analyst at Kinesis Money, estimates that gold will continue to weaken in the future. The reason is that the Fed’s strict policy should continue for a long time.
“With inflation still high and employment data still strong, it’s hard for the Fed to start easing policy,” Rowling said. Reuters.
The Fed will hold a Federal Open Market Committee (FOMC) meeting from today to tomorrow, US time (November 1-2).
The market already expects the Fed to raise the benchmark interest rate by 75 bps. The market is now more awaiting the Fed’s political signal in the future.
“Market participants will choose to wait and see until the Fed’s decision comes out,” Rowling said.
Refer to the data Refinitive, Tuesday (11/01/2022) trading at 06:15 WIB, it was observed that the world price of gold in the spot market was still weakening. Gold was at US $ 1,632.92 per troy ounce. Gold prices slipped by 0.012%. This weakness of gold extends gold’s negative trend to four days.
In one week, the price of gold fell by 1.2% point to point. In one month the price of gold also fell by 3.9% while in one year it fell by 8.9%.
RESEARCH TEAM OF CNBC INDONESIA
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