Jakarta, CNBC Indonesia – Gold prices rose slightly. On Friday (9/23/2022) trading at 06:22 WIB, the world gold price on the spot market was at US$ 1,671.38 per troy ounce. Gold prices rose 0.05%.
Today’s strengthening reversed the negative trend in yesterday’s trading where the gold price shrank 0.19% to the position of US $ 1,670.55 per troy ounce.
In a week, gold prices edged down 0.22% on a weekly basis point to point. In a month, the price of gold shrank 4.4% while in the year it fell 4.1%.
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Analyst from Religare Broking Sugandha Sachdeva said an increase in the benchmark interest rate of the Federal Reserve (The Fed) in a short time and may last a long time will suppress economic growth. If the economy continues to deteriorate then gold could continue to strengthen as it is increasingly sought after as a safe asset.
Gold prices that continue to slope also increase the interest of many people to try their luck by buying gold.
“The increase in the Fed’s benchmark interest rate of course weighs on gold but the fears of a recession are also getting real. This condition will again increase interest in buying gold at low prices,” said Sachdeva, as quoted from Reuters.
However, gold prices are very vulnerable to future weakening. Moreover, the Fed has reaffirmed their commitment to bring inflation to the range of 2% so that aggressive monetary policy will last a long time.
Analyst from TD Securities Bart Melek even predicts gold will continue to fall below US $ 1,600 per troy ounce.
“Overall, there are many factors that make gold’s negative trend continue, including the commitment of the Fed. In the not too distant future, gold could fall to a range below US$ 1,600,” he said.
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