The price of gold is more expensive, time to sell, or buy?

The price of gold is more expensive, time to sell, or buy?
Agriculture, Asia, Bali, Cambodia, China
The price of gold is shining. Mothers who have gold jewelry and bars must be happy, immediately rush to sell. While prices are high, they can make big profits.
Take the example of Antam’s gold print. As of August 21, 2019, Antam’s gold was priced at Rp756,000 per gram. The price increased by IDR7,000 per gram from the previous IDR749,000 per gram.
The gold issued by the State-Owned Enterprise (BUMN) has reached a record high of IDR 766,000 per gram on August 15, 2019.
Try to compare it with 3 months ago, when Antam’s gold price was IDR 663,000. That means the difference is IDR93,000 per gram. If calculated as a percentage, the increase reached 14.03%.
The increase in retail gold prices in the country can not be separated from the influence of world gold prices that are ‘muscular.’ The price on the spot market touched USD 1,500 per ounce.
It is no accident that global gold prices have continued to climb in recent times. There are several factors that drive the price of gold increasingly sparkling.
Factors Driving Gold Prices Increasingly Glare
The strengthening was ‘ignited’ by a number of external or foreign sentiments:
1. The issue of economic recession
The United States (US) is rumored to be wrapped in an economic recession. Namely, a condition of decline in Gross Domestic Product (GDP). It could also be interpreted when real economic growth is negative for 2 quarters or more in 1 year.
Uncle Sam’s country is predicted to be ‘stricken’ by the recession starting in 2020. But some are dreaming about this year or 2021. Signs of this recession are visible in the yields of US government debt in short tenors higher than long-term debt coupons.
The yield condition has gradually recovered, where the yield of long tenor bonds is greater than the short tenor. This sentiment which yesterday (20/8) pushed down the price of gold, while the US stock market greened.
Another sign of the US recession, unemployment has crept up in recent times. Also the decline in the manufacturing index (ISM Manufacturing Index).
2. Trade wars to currency wars
Although slightly eased, the tension of trade war and currency war between the US and China has not completely disappeared. You know, US President Donald Trump is hard to guess. Can change at any time. If US trade policies harm China, surely President Xi Jinping will not remain silent.
It could be that China took steps deliberately devaluing the Yuan currency to fight Trump. The impact is not just a trade war, but also a currency war.
The above factors have pushed up the price of gold, to set a record. The reason is the uncertainty of global economic conditions, making gold a safe haven hunted by investors. Many people buy gold, even though the world’s central bank.


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