Had a drop, this is a sentiment that will bring gold back to sparkle at the end of the year

JAKARTA, KOMPAS.com – The gold luster is still fading. Market expectations of a Covid-19 vaccination that can lift the global economy are indeed the main barrier for gold to shine.

Quoting Bloomberg, Friday (11/12/2020), gold price futures for the February 2021 contract closed at 1,843 US dollars per ounce.

This position is far from the all-time high of gold which was reached on 6 August. At that time, gold was at 2,080.10 US dollars per ounce.

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In the last month, the price of gold has also decreased by 4.8 percent. Even so, the price of gold rose 0.2 percent over the past week.

Quoted from HappyAccording to Meilki Darmawan, an analyst at Henan Putihrai Sekuritas, the movement of gold prices is still driven by market players’ expectations of an improvement in the world economy due to the Covid-19 vaccine.

The success of a number of pharmaceutical companies in making the Covid-19 vaccine has increased investor confidence that the global economy in the next year can rise faster.

He added that actually investors do not need to worry about the current movement of gold.

The nature of gold, which is a hedge against potential inflation, can support the movement of the yellow.

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Therefore, there is still hope for gold prices to strengthen in 2021.

“The potential for inflation will still occur, especially in the United States (US) due to the new stimulus that will be provided. So gold still has a chance to strengthen, “Meilki told Kontan.co.id, Saturday (12/12/2020).

To NH Korindo Sekuritas Indonesia research, Anggaraksa Arismunandar added that even though gold is currently under pressure from positive news related to the Covid-19 vaccine, gold can still take the opportunity to appear mighty.

This is related to the planned stimulus package to be issued by the US government.

If the US government and congress agree on the value of the stimulus package, golden opportunities to sparkle are wide open.

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Given that, so far this year, gold has jumped more than 20% due to massive stimulus by a number of countries to contain the economic downturn due to the Covid-19 pandemic.

Anggaraksa also assessed that as a hedging instrument (hedging) from inflation, gold would have a positive impact because stimulus packages with large values ​​would tend to increase the inflation rate.

“For next year, we project that the price of gold will be in the range of 1,800-2,000 US dollars per ounce,” he concluded.

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