Jakarta, CNBC Indonesia – PT Pegadaian (Persero) has released the gold price for today. For ordinary people, the price of the precious metal is still expensive, so it is feasible to be used as a means of investing.
Today, Sunday (18/10/2020), here is the development of gold prices at Pegadaian:
Even though it is still expensive, the price of gold at Pegadaian tends to fall. The price of gold at Pegadaian is of course following the movement at the world level, which this week has dropped almost 1.6% point-to-point.
Gold price correction occurred in line with the strengthening of the US dollar exchange rate. In the last week, the Dollar Index (which measures position greenback in front of six major world currencies) gained 0.71%.
The gold price and the US dollar exchange rate have an inverse relationship. This is because gold is a commodity priced in Uncle Sam’s currency.
When the US dollar strengthens, gold will become expensive for investors holding other currencies. This makes the demand for gold decrease so that the price is cut.