Trump's Victory Potentially Lowers Gold Prices

Gold (between)

JAKARTA - Donald Trump's victory in the United States presidential election has the potential to lower the price of gold.

According to University of Indonesia's economic observer Budi Frensidy, Trump may be able to suppress geopolitical tension and war in several areas, which has been one of the things that has significantly boosted gold prices.

"When the war is over, say Trump is elected president, the price of gold will go down, because now (the price of gold) is already high. The gold will be hunted when there is war, recession, depression, economic difficulties, political instability and so on," he quoted Antara as saying.

Budi also highlighted the impact of the trade war on gold prices. According to him, although the trade war could boost gold prices in the short term, in the long term, the escalation of prolonged trade conflicts could lead to a decline in gold prices.

Therefore, he advised people who want to invest in gold to be patient and wait for the right moment, because gold is predicted to decline again quite deeply.

"So it's safe if you already have (gold) go ahead, wait for the right time (to sell) because gold is estimated to increase to IDR 2 million per gram," he said.

If you don't have it, just buy it later when it goes down because I think it's more likely to go down than the possibility of going up. Even if it goes up, the increase won't be too big," he said.

The price of gold, which previously slumped by IDR 30,000 per gram on Thursday's trading (7/11/2024), rose again by IDR 14,000 to IDR 1,527,000 per gram on Friday.

Meanwhile, money market observer Ibrahim Assuaibi said that it is not yet time to purchase precious metals, as it is possible that the price of gold will continue to fall until it reaches the level of 2,600 US dollars per troy ounce.