JAKARTA - World gold prices have weakened after previously reaching a new all-time high at the level of 2,450 US dollars per ounce troi. Based on Economic Trading data, Friday, May 24 at 15.00 WIB, the price of gold spot weakened 0.24 percent to US$ 2,340 per ounce troi.
Furthermore, the price of gold from Mulia Metal PT Aneka Tambang Tbk (ANTM) fell on Friday, May 24. Citing the Mulia Metal site, the price of one gram of Antam's gold was at Rp1,325,000, down Rp20,000 from the previous day's trading which was at the level of Rp1,345,000.
Forexindo Berjangka's Director of Profit, Ibrahim Assuaibi, said that the gold price had decreased further in today's trading, further back away from its record high due to concerns over interest rates increasing as the Fed's minutes showed concern over stiff inflation.
In addition, the price of metal is under pressure by the strengthening of the dollar, which reached its highest level in a week after minutes of the Federal Reserve meeting at the end of April showed policymakers were increasingly concerned about inflation.
"As well as reduced safe haven requests, the deaths of the Iranian president have not increased tensions in the Middle East as previously thought," he explained in his statement, Friday, May 24.
Ibrahim said some policymakers were also open to raising interest rates further to lower inflation, although such scenarios did not seem likely.
However, the Fed is likely to keep interest rates high for a longer period of time in the face of high inflation, with a speech from several policymakers this week showing that the bank has limited confidence in inflation to achieve its 2 percent annual target in the short term.
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"The signs of the US central bank will still maintain high interest rates, likely to fade the price of gold, as well as the strengthening of the US Treasury dollar and returns. Greenback strengthened after the reading of a central bank statement that was still cautious because inflation was still stagnant," he said.
Ibrahim said that in this condition, gold would fall again to the level of 2.256 US dollars per ounce of the troi, if it penetrated, gold would go to the lowest level at 2.062 US dollars per ounce of the troi.
According to Ibrahim, the high-term interest rate is a bad sign for gold and other precious metals, considering that this increases the cost of investing in metals.
Ibrahim predicts tomorrow's trading world gold price will be trading lower in the range of 2.277.50 US dollars per once troi of up to 2.372.40 US dollars per once troi.
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