In the precious metal commodity exchanges in the London market, the current condition of gold prices is still in negative after Rising For A Short Time last night .
Throughout the trade in the previous week, the gold price continued fall especially during the Turkish crisis which made global financial markets turbulent because of concerns about the futureturkey which could have an impact on a country’s economy against the threat of debt default in several countries including from the European Union.
Dollar Safe Heaven No More
The dollar’s safe haven action has been rife but gradually since last week, the atmosphere is starting to be conducive as the Lira strengthens and the US dollar starts to stop from continuing to strengthen, able to withstand the turmoil of gold prices to buyback again until this afternoon. Moreover, President Trump’s criticism of the work of the Fed who likes to raise interest rates seems to be a powerful weapon for gold to rise again.
Gold prices last week were at their lowest level in 17 months and briefly traded below the psychological level of $ 1200 per troy ounce, thus increasing the pain of gold prices that have failed to carry out their functions as a safeguard of investment when the crisis occurs. But thanks to Trump’s criticism, the price of gold can return to its psychological level again.
But China’s efforts to send a trade delegation to the US to negotiate with President Trump so that the trade war between the two parties can be avoided, has helped the negative gold movement again even though President Trump was skeptical of Beijing’s efforts. Moreover, the Fed after the interest rate minutes emphasized that the Fed’s interest rates must continue to rise, it has managed to make gold prices corrected again this afternoon.
This makes the price of gold for December contracts on the New York Mercantile Exchange futures exchange Comex division temporarily weakened $ 5.10 or 0.42% at the level of $ 1998.20 per troy ounce. For the silver price, the September contract on Comex temporarily weakened $ 0.12 or 0.85% to $ 14.63 per troy ounce.
Gold Prices Still Under Pressure
Gold prices in general are still under selling pressure or weakening and entering its tenth week if this week is also down, then in a row that has experienced a weakening with the potential of a trade war and plans for a Fed rate hike that further corners the price of gold to its lowest level since this year.Tariff warfare will cause an increase in the price of goods, or it means that inflation in the US rises. Rising US inflation is in line with the desire of the Fed to raise interest rates if inflation rises.