World Gold Prices Drop Five Consecutive DAYS

Global gold price (Photo: Antara)

JAKARTA - The price of gold futures slumped ahead of the weekend, Friday, February 24 (Saturday morning WIB). This decline extended losses for the fifth day in a row and recorded a decrease of four consecutive weeks.

This decline was due to investors reacting to US Personal Consumption Price Index data which was higher than expected.

Citing Antara, April's most active gold contract on Comex New York Exchange division slipped 9.7 dollars, or 0.53 percent, to close at 1,817.10 dollars an ounce. For this week, the gold future contract lost 23.3 dollars or 1.80 percent.

Gold futures slipped 14.70 US dollars or 0.80 percent to 1,826.80 US dollars on Thursday, February 23, after a slight drop of one US dollar or 0.05 percent to 1,841.50 US dollars on Wednesday, February 22, and fell 7.70 US dollars or 0.42 percent to 1,842.50 US dollars on Tuesday, February 21.

The US Commerce Department reported Friday, February 24 that the US Personal Consumption Price Index does not include food and energy called the core PCE Index rising 0.6 percent month-on-month and 4.7 percent year-on-year in January. The market has estimated readings at 0.5 percent and 4.4 percent, respectively.

Higher inflation data from expectations prompts expectations that the Federal Reserve's interest rate hike will continue, supporting the US dollar to strengthen and yield US government bond yields rising.

Cleveland Federal Reserve president totaling Mester said in an interview with CNBC on Friday (24/2/2023) that he had not yet decided whether he wanted the central bank to raise interest rates by 50 basis points at the next meeting in March.

"PCE's report shows that the Fed needs to do more,"▁dokter Mester said.

President Joe Biden, in a statement issued by the White House, agreed. "Today's report shows we have made progress on inflation, but we have more work to do."

The US Commerce Department reported Friday, February 24 that US new home sales increased 7.2 percent to a seasonal adjusted annual rate of 670,000 units in January, the highest level since March 2022.

Another precious metal, silver for March delivery fell 49.60 cents, or 2.33 percent, to close at 20.81 dollars an ounce. Platinum for April delivery slumped 37.60 dollars, or 3.98 percent, to settle at 907.90 dollars an ounce.