ILLUSTRATION. Spot gold prices fell 4.72% in the week to US $ 1,782.59 per ounce troi.
Reporter: Wahyu Tri Rahmawati | Editor: Wahyu T. Rahmawati
KONTAN.CO.ID – JAKARTA. Gold prices have slumped due to the sell-off amid hopes for a faster corona vaccine and a smooth transition to the United States government. On Friday (27/11) at 23.03 WIB, the spot gold price was at US $ 1,782.59 per troi ounce, down 1.83 percent compared to yesterday’s price of US $ 1,815.80 per troi ounce.
This spot gold price is the lowest level since July 7 for the last five months. In fact, the price of gold futures for delivery in February 2021 reached its lowest level since last June 22. Tonight, the price of gold futures traded on the Commodity Exchange is at US $ 1,785.10 per troi ounce, down 1.44% compared to Wednesday’s price (25/11).
The spot gold price has slumped 4.72% this week from US $ 1,870.99 per troi ounce last Friday. This decline in gold prices was the largest decline since the week of March 13.
“Once the price hits below the key $ 1,800 level, it triggers a sell-off. It is likely that the price will test the $ 1,750 level because we have strong fundamental reasons such as vaccines,” OANDA analyst Craig Erlam told Reuters.
Pressing even more on gold, US stock indexes edged higher on vaccine optimism and as investors bet on a calmer global trade relationship under President-elect Joe Biden. “It is believed that Biden will take a calmer approach to trading with other countries such as China and that is reflected in the stock market,” said Natixis analyst Bernard Dahdah.
US President Donald Trump said on Thursday that if the Electoral College elects Biden, he will leave the White House. This paved the way for Biden to take over the presidency. “However, with very low interest rates and the prospect of greater economic stimulus, gold looks strong in the long term,” said Dahdah.
The economic impact of the viral pandemic has seen global central banks press interest rates. At the same time, the massive stimulus into the economy has raised fears of higher inflation and has spiked gold prices by more than 17% so far this year.
Also Read: Wall Street’s three main indexes advanced before the weekend
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Reporter: Wahyu Tri Rahmawati
Editor: Wahyu T. Rahmawati
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