ILLUSTRATION. The spot gold price was at US $ 1,949.49 per troi ounce, up 0.11% from yesterday’s closing price.
Reporter: Wahyu Tri Rahmawati | Editor: Wahyu T. Rahmawati
KONTAN.CO.ID – JAKARTA. Gold prices strengthened again towards the end of this week. On Friday (21/8) at 6.40 WIB, the spot gold price was at US $ 1,949.49 per troi ounce, up 0.11% from yesterday’s closing price.
Spot gold prices have risen for two consecutive days since yesterday after slumping from above US $ 2,000 in the middle of this week. The price of gold futures for the December 2020 delivery contract on the Commodity Exchange also rose 0.59% this morning to US $ 1,958 per troi ounce.
The number of unemployment claims in the United States (US), which again reached more than 1 million last week, is one of the triggers for rising gold prices. Minutes of the Federal Reserve meeting emphasizing fears of economic recovery also fueled the rise in asset prices safe haven gold.
Michael Matousek, head trader of US Global Investors said that the minutes of the Fed meeting emphasized the need for people to own gold because they are still worried about the coronavirus and its impact on the economy. “The central bank will still be accommodating and help consumers survive,” Matousek told Reuters.
The Fed said that the US will still face uncertainty and will need further monetary support. On the other hand, jobless claims, which again rose above 1 billion last week, also increased interest in buying gold.
Edward Meir, an analyst at ED&F Man Capital Markets said that gold’s fundamentals have not changed. “The stimulus is still flowing and it is premature to say that there has been a global recovery so interest rates will start to rise and the dollar will strengthen. We are still months away from that,” Meir said.
Central banks are pouring massive stimulus and cutting interest rates to record lows to avert the economic collapse caused by the coronavirus pandemic. This condition has triggered an increase in gold prices by around 28% since the beginning of the year.
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Reporter: Wahyu Tri Rahmawati
Editor: Wahyu T. Rahmawati