Gold Prices Continue To Snatch By US Dollar Strengthening

Gold rods at Austrian Gold and Silver Separation Factories in Vienna, Austria. (photo: dock. intermediate)

JAKARTA - Gold prices were slightly lower at the end of trading Friday (Saturday morning WIB), extending losses to the third day in a row under pressure by the strengthening of the US dollar when investors reassessed their expectations for lower interest rates from the Federal Reserve. Gold contracts were most active for June delivery in the Comex New York Exchange division, eroded by US$0.70 or 0.03 percent to close at US$019.80 per ounce, after hitting the highest level of the session at US$0.027.80 and the lowest at US$0.005.70. Gold futures slumped 16.60 US dollars or 0.81 percent to US$0.50 on Thursday 11 May, after slipping 5.80 US dollars or 0.28 percent to US$0.37.10 on Wednesday 10 May, and rose 9.70 US dollars or 0.48 percent to US$042.90 on Tuesday 9 May. The market reduced their expectations for the decline in interest rates this year, and now estimates that nearly 92 percent of the bank's chances will keep interest rates stable at the June meeting.

In a speech at the European Central Bank conference in Frankfurt Friday, May 12, Federal Reserve Governor Michelle totaling the latest IHK (consumer price index) and employment reports have not provided consistent evidence that inflation is declining. "I will continue to closely monitor the incoming data because I consider the right monetary policy stance for our June meeting," he said.

Namun demikian, emas masih mampu bertahan di atas level psikologis 2.000 dolar AS karena permintaansafe havenuntuk logam kuning tetap relatif tinggi di tengah prospek ekonomi yang memburuk.

Meanwhile, economic data released Friday May 12 varies. The US Department of Manpower reported that US import prices rose 0.4 percent in April, following a 0.8 percent decline in the previous month. The University of Michigan consumer sentiment measure fell to an initial reading of May 57.7 from the April 63.5 reading. That's the lowest level since November last year. Economists expect another May 63.600.Obligious charter, silver for July shipments down 27 cents, or 1.11 percent, to close at 24.154 US dollars per ounce. The Platinum for July delivery slumped 38.00 dollars, or 3.44 percent, to settle at 1.067 US dollars per ounce.