Gold Wholesale Action Begins, Prices Predicted to Fly This Week!

Jakarta, CNBC Indonesia – Gold prices slumped earlier this week. However, the many positive sentiments this week are projected to make the metal powerful again.

During trading Monday (5/12/2022) at 06:02 WIB, the world gold price on the spot market was at US$ 1,797.31 per troy ounce. Gold prices slumped 0.03%.

Within a week, the price of gold still strengthened 3.2%. point to point. In a month, the price of gold also still jumped 6.9% while in a year it rose slightly by 1.1%.



Head of market strategist at SIA Wealth Management, Colin Cieszynski, estimates that gold prices will still be able to creep up even though the United States (US) central bank, The Federal Reserve (The Fed) will raise interest rates later.

“Investors are finally starting to realize that gold is still a safe defensive asset. Gold continues to play that role,” said Cieszynski, quoted from Kitco News.

Gold shot up last week and even managed to break back to the level of US $ 1,800 per troy ounce. The main factor was the Fed Chairman Jerome Powell’s statement regarding the moderation of the Fed’s benchmark interest rate hike going forward.

Besides the Fed’s statement, gold also has other important supporting factors. Head of currency strategy Forexlive.comAdam Button, said gold benefited from increased demand ahead of the year-end holidays.

Gold still has another supporting factor, namely developments in China.

A number of regions are now starting to relax restrictions following protests against the zero Covid-19 policy. China is the biggest importer of gold so the easing of restrictions will have a big impact on gold.

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“The trend of buying gold in December has started. While the US dollar is sluggish, all factors are now supporting gold to strengthen gold,” said Button.

The dollar index closed last week down to 104.55. This position is the lowest since June 26 2022 or five months more.

The positive outlook for gold in the future can be seen from the Kitco News Gold Survey. In a survey involving 18 gold analysts from Wall Street, 67% of analysts believe gold will strengthen. The current economic condition is still bullish for the precious metal. As many as 33% of analysts see the movement of gold will be difficult going forward.

A total of 1,018 votes took part polling online Main Street also shows 70% of respondents believe gold will strengthen this week. Only 18% project that gold will weaken this week.

Darin Newsom, senior market analyst at Barchart, even believes gold will be able to move around US% 1,800 throughout the week.

However, CIBC economist Katherine Judge warned market participants not to get too excited about the statement dovish Powell. However US inflation is still far above the Fed’s target of around 2%.

US inflation slumps to 7.5%(year on year) in October 2022 from 8.2 (yoy) in September.

Moreover, data non-farm payroll also improved. The US reported an additional workforce in November 2022 reaching 263,000. This figure is higher than market expectations of 200,000. The tight US workforce is still a concern because the central bank The Fed could again raise interest rates aggressively.

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“The Fed mencoba slowing employment growth to bring inflation on target and the November employment data does not support that,” said Judge.


[Gambas:Video CNBC]

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