Jakarta, CNBC Indonesia – The election of the President of the United States (US) is predicted to affect the trend of world gold prices. The US Presidential election was won by the Democratic presidential candidate, Joe Biden-Kamala Harris, against the incumbent Donald Trump-Mike Pence.
Dikki Soetopo, Director of PT Solid Gold Berjangka (SGB), said the stock market, including world gold trading, experienced a sharp jump with sentiment in the US presidential election.
According to Dikki, many investors have high hopes for Joe Biden as the number 1 person in the United States, because the continued stimulus for Covid-19 will be much greater.
In addition, the trade war between the United States and China is expected to end if Joe Biden is elected so that positive sentiment towards the global market will rise again.
Apart from gold, other futures market products currently benefiting include the Hang Seng Index (HKK), which has posted a 3.62% increase in Friday night trading (6/11), while gold rose 2.62%, including bourses. US Wall Street stocks.
On the other hand, the dollar index, on the other hand, experienced a sharp decline to -0.81%.
“We predict that during the US election, the price of gold will be in the range of US $ 1,953 / troy ounce to US $ 1,964 troy ounce. Meanwhile, HKK will be at the level of 26,500-26,100,” explained Dikki, in a statement received by CNBC Indonesia. , Sunday (8/11/2020).
He said the recommendation to investors, before determining who will be the US president, global markets will move with high volatility.
Therefore, investors are expected to be more careful even though the trend of gold and HKK prices has increased, the direction may change.
“However, the recommended futures products during the current US election moment are gold and HKK. In addition, these two products will also experience a positive trend during the Diwali celebration in India and Window Dressing towards the end of 2020 and Chinese New Year in early 2021,” he explained.
On a separate occasion, the price of gold was predicted to have the potential to return to its highest level in history, namely at US $ 2,000 / troy ounce.
According to the COO as well as the Digix Co-Founder of a platform trading digital gold Shaun Djie said that gold will return to its psychological highest level after the US election is over and the winner is known.
The catalyst that triggers the price of gold to return to this level is an increase in global cases of Covid-19 infection. The second wave of Covid-19 made the prospects for economic recovery bleak.
However, next year the sentiment that will drive the price of gold is the distribution of the Covid-19 vaccine. If a vaccine is available and its distribution is as expected, Djie estimates that the price of gold will drop to US $ 1,600 / troy ounce, as he said in an interview with Kitco News.
However, if the opposite happens, the gold price will be ready to shoot higher.
Gold Price Range During US Election, SGB Data
Support 1 : US$1.914/troy ons
Support 2 : US$ 1.900/troy ons
Resistance 1 : US$1.953/troy ons
Resistance 2 : US$1.964/troy ons
HKK Range During US Election, SGB data
Resistance 2 : 26.500
Resistance 1 : 26.100
Support 1 : 25.200
Support 2 : 25.024
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