The luster has waned, gold prices slumped 1% and are firmly on track for their weekly decline

ILLUSTRATION. Employees show Antam’s certified gold bullion at an outlet at the CIkini Gold Center, Jakarta, Tuesday (28/7). Gold prices fell 1% on Friday (21/8).

Reporter: SS. Kurniawan | Editor: SS Kurniawan

KONTAN.CO.ID – Gold prices slumped 1% on Friday (21/8) as the United States dollar (A) strengthened, reducing its attractiveness bullion and steadying it on its second weekly decline path.

Referring to Bloomberg, spot gold prices fell 1.16% to US $ 1,924.69 per troi ounce at 19.26 WIB. Meanwhile, US gold futures prices fell 1.21% to US $ 1,923.00 per troi ounce.

For the week, gold is down around 1%, having shed more than 3% mid-week.

“Gold prices will be range bound for the next few days or weeks, until something happens ahead, either US stimulus or US-China tensions turn very positive or negative,” said David Madden, CMC Market Analyst.

Also Read: The spot gold price strengthened to US $ 1,949.13 per troi ounce in the middle of the day

“A stronger strengthening of the US dollar has put pressure on gold,” Madden added Reuters. Against a basket of currencies, the US dollar was up 0.3%, making gold more expensive for holders of other currencies.

Gold bullion prices continued to decline, although the data showed no signs of recovery in the eurozone economy. Data also showed that activity, especially in the service sector, slowed down in Germany this month.

Adding to the above doubts rebound fast economy, the Federal Reserve (The Fed) office on Wednesday (19/8) warned of a recovery facing a very uncertain path.

“The price of gold has formed a level support important, which is also nearing a record high since 2011, “Commerzbank analysts wrote in a note like Reuters quote.

Also Read: Antam’s 24-carat gold price has increased by IDR 1,000 per gram today, Friday, 21 August 2020

“So it’s important to defend the area support this. Otherwise, the correction (in gold prices) could drag on significantly longer, “Commerzbank analysts added.