Counting Time, Gold One More Step to Level US $ 1,800 / Oz

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Jakarta, CNBC Indonesia – The price of precious metals gold continues to move near US $ 1,800 per troy ounce. The development of a worsening coronavirus disease 2019 (Covid-19) pandemic continues to drive asset prices safe haven it rises higher.

Increasing cases of corona virus infection in various countries must still be monitored. Already more than 10.3 million people in the world tested positive for the dangerous virus. More than 500 thousand lives in the world have died being victims of the virulence of the virus.

The US is still the country with the highest number of cases in the world with a total of no less than 2.6 million people declared as having Covid-19. White House Health Advisor Dr. Anthony Fauci warned that the increase in the number of cases in the US could be horrifying with 100 thousand cases per day.

The superpower is now reporting more than 40 thousand new cases every day. Almost doubled from 22.8 thousand in mid-May. The most cases are reported in the south and west. Fauci said 50% of the total new cases came from four states: Florida, California, Texas and Arizona.

“I cannot make accurate predictions but this will be very disturbing,” Fauci told the senator during an audience with the senate committee on health, education, labor and retirees.

“We now have more than 40,000 new cases per day. I would not be surprised if the number goes up to 100,000 per day if there is no reversal, so I am very concerned,” he added, quoting CNBC International.

That concern lockdown will be re-applied and the economy becomes worse and worse, making the interest in gold precious metals higher. Wednesday (1/7/2020) at 07:45 WIB, the price of gold was still able to strengthen despite a thin 0.05% to US $ 1,781.59 / troy ounce.

Yesterday the price bullion up 0.57% to US $ 1,780.67 per troy ounce. Now the price of gold is only US $ 20 from the level of US $ 1,800 per troy ounce. Seeing the conditions and fundamentals of gold, many are optimistic that the level can be broken.

“Price spikes [emas] cheerfully welcomed and will almost certainly be a strong closing that will push the price down to US $ 1,800 in a short time. “

Indeed, for now the world is being overshadowed by low inflation or even deflation.

But when interest rates are low and the central bank continues to try to pour out stimulus by injecting money into the economy the threat of higher inflation in the future increasingly makes the long-term prospect of gold increasingly attractive.

On the other hand gold also benefits when interest rates are low, because gold is an investment that does not provide returns. So in the language of the economy, opportunity cost to hold assets in the form of gold to be low.

“What triggered the gold market fundamentals became bullish it remains the same, namely the development of Covid-19 which makes the demand for safe-haven assets rise, and central bank stimulus that can cause inflation in the future, “said Kitco Metals senior analyst Jim Wyckoff.

CNBC INDONESIA RESEARCH TEAM

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