Gold Investment Is Increasingly A Favorite, Observer: Due To Concerns Of Big Country Inflation And Geopolitical Situation

Illustration. (Photo: Doc. Antara)

JAKARTA - Precious metal (LM) is still considered a promising long-term investment, as reflected in the gold price which tends to show an increase in Indonesia.

At the beginning of the week of March 5, 2022, ANTAM's gold precious metal price was recorded at Rp. 1.005,000 per gram, an increase of Rp. 3,000 compared to the previous day.

"Since the beginning of 2022, LM's investment potential has been very attractive and profitable. Moreover, world gold prices have continued to increase significantly," said capital market analyst Esandar Arthamas, Lukman Hqeem, quoted by Antara, Sunday, March 6.

According to him, two main factors are driving the current increase in gold prices. First, related to concerns about rising inflation in a number of major world countries. Second, the geopolitical situation that triggers uncertainty in global economic growth after being hit by the COVID-19 pandemic.

He explained that the continued Russian invasion of Ukraine has also worsened the situation and disrupted political stability in Europe.

In this uncertain situation, making gold an investment safety asset or a safe haven, as well as a hedging tool to make gold one of the favorite investment instruments.

He explained that from year to year the price of LM tends to rise, but there are times when it experiences a correction due to technical factors where retail investors tend to book profits. Meanwhile, for large investors, including central banks, gold is actually an opportunity to accumulate repurchases.

According to records, the price of precious metals in the Indonesian market had touched a premium price of close to IDR 1.2 million per gram and is now trading at around IDR 1 million per gram.

"Looking at the fundamentals and technicals, it is very attractive at this time to buy and invest in precious metals. The price of gold bullion of precious metals currently has a good level of liquidity," he said.

Gold prices in global markets at the end of trading Friday (Saturday morning WIB), continued to move towards the target of 2,000 US dollars per ounce due to the worsening of Russian aggression in Ukraine.

Gold futures for April delivery on the Comex division of the New York Exchange, rose 30.7 dollars, or 1.59 percent, to close at 1,966.60 dollars an ounce, or a 4.2 percent gain in the past week, the biggest weekly gain since July. 2020.