Jakarta, CNBC Indonesia – Gold prices continue to fall and even touched a record low in more than three months. On trading Friday (13/5/2022) at 06:36 WIB, the world gold price in the market spot was at US $ 1,818.93 per troy ounce. Weak 0.15%.
This price level is the lowest since February 4, 2022, which is US $ 1,807.49 per troy ounce or more than the last three months. In a week, gold prices have corrected 3.4% point to point. In a month, gold prices also weakened 7.8%.
The weakening of gold was triggered by the strengthening of the United States (US) dollar. Based on Refinitiv data, the US dollar index touched 104.75 again on Thursday at 06:48 WIB, still struggling at its highest record in two decades, which was around 104.49.
“The dollar is strengthening and the market is also worried that the Fed will raise interest rates aggressively. This will continue to hit gold prices,” Bart said, as quoted from Reuters.
The strengthening of the US dollar was triggered by market expectations of an increase in the Fed’s benchmark interest rate by 50 bps in June following high inflation in the US in April. Uncle Sam’s country recorded an inflation of 8.3% (year on year/YoY) in April. Although lower than March (8.5%) it is still far above the Fed’s target of 2%.
“The strengthening of the US dollar makes gold in the danger zone. If gold falls to the level of US $ 1,800 the price can continue to fall to the range of US $ 1,750. Gold is difficult to offer traction as long as the movement of the US dollar is very strong,” said Edward Moya, an analyst at OANDA. .
Moya added market expectations regarding the Fed’s benchmark interest rate hike and current market conditions risk off make it difficult for gold to advance let alone penetrate the level of US $ 1,900.
CNBC INDONESIA RESEARCH TEAM
Broken Dam! Unstoppable Gold Price Increase
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