Market Players Choose Gold As A Protected Asset Amid Global Uncertainty

Illustration. (Photo: Doc. Antara)

JAKARTA - Finex Brahmantya analyst Himawan said market participants prefer gold as a hedging asset in anticipating risks amid global uncertainty.

"Especially regarding geopolitics that traders are uncertain, in my opinion, are more interested in safe haven gold assets as hedges," Brahmantya said, quoted from Antara, Tuesday, March 19.

According to him, gold is currently the prima donna that has the potential to increase to reach new all-time high due to positive sentiment from geopolitical heat, recession from big countries and uncertain economic conditions.

The price of gold bars from PT Aneka Tambang Tbk (Antam) which was monitored from the Mulia Metal page, Tuesday morning, rose by Rp. 6 thousand per gram, bringing it to Rp. 1,199,000 per gram.

Meanwhile, the price of gold bullion was at IDR 1,193,000 per gram on Monday (19/3).

On the other hand, Brahmantya said financial services industry players could trade short-term in anticipating the risks of global uncertainty that is still continuing this year.

"In the midst of these uncertain conditions as well as geopolitical conditions that take place, financial industry players can carry out short-term trade by utilizing the volatility that has occurred during this week," he said.

In short-term trading, market participants need to actively monitor market trends and take advantage of market volatility. They are preparing to buy and sell at the right time to make a profit.

Previously, the Indonesia Commodity and Derivative Exchange (BKDI) or Indonesia Commodity and Derivatives Exchange (ICDX) projected that the performance of commodity futures trading would increase by 25 percent in 2024 compared to 2023.

"This optimism is in line with Bank Indonesia's projection which estimates that economic growth in 2024 is predicted to be better than this year, which is in the range of 4.5 percent to 5.3 percent," said ICDX President Director Nursalam on the sidelines of ICDX Outlook in Jakarta, Wednesday.

Nursalam said that although in 2024 Indonesia has a national agenda, namely legislative elections and presidential and vice presidential elections, his party believes that these activities will have little negative impact in the commodity future trade sector.

This is because national economic growth, which is expected to improve, will be a positive catalyst for the commodity futures trade industry.