The World Gold Price Soars Freely, What About Pawnshops?

The World Gold Price Soars Freely, What About Pawnshops?


The price of gold bullion sold by PT Pegadaian tends to strengthen on Thursday (02/10/2022). The movement of the Pegadaian gold price is in line with the world gold price.

Yesterday, gold prices closed at US $ 1,832.45/troy ounce, up 0.38%. This makes the price rose 1.46% in the past week. Over the past month, the price of gold has increased by 1.75%.

In today's trading, Antam's gold price at Pegadaian did not move compared to yesterday's price. This gold is available from 0.5 grams to 1,000 grams.

Then Antam retro type jumped 0.32% to 0.4% compared to yesterday's position.

Antam's retro type is an old gold bar where the gold and the certificate are separate. Retro Antam gold was last produced in 2018, and is available from 0.5 grams to 100 grams.

World gold prices continued their upward trend driven by the falling US dollar and falling US government bond yields. Even so, investors prefer to wait and see before the release of US inflation.

"The dollar's dip seems somewhat supportive of gold. But overall the gold market is a bit flat in anticipation of tomorrow's inflation figures," said Daniel Pavilonis, senior market strategist at RJO Futures.

The current trend of the US dollar tends to be flat at the lowest price area since two weeks ago. Yesterday, the US dollar index closed at 95.51, down 0.14% from its previous position.

This is a positive sentiment for gold. Because, precious metals are priced in dollars to be cheaper than other currencies. Thus, when demand increases, prices rise too.

Meanwhile, the yield on the US 10-year tenor began to decline from its highest point since November 2021.

The movement of gold with yields of US Treasury Bonds tends to be opposite. This is because gold and bonds are both minimum risk assets.

All attention is on the soon-to-be-released US consumer price data for January could provide further clarity on the Federal Reserve's (The Fed) rate hike agenda.

Referring to the Reuters consensus, US inflation is expected to reach 7.3% year-on-year (YOY). This figure is up from 7% in December 2021.

A strong inflation rate will normally increase the demand for gold as an inflation hedge.

However, an increase in US interest rates will increase the opportunity cost of non-yielding bullion. This reduces the luster of gold.

According to Wang Tao, technical analyst at Reuters, the opportunity for world gold prices to rise is still open.

"Spot gold could test resistance at $1,836 per troy ounce," said Wang Tao, Reuters analyst in research. If it is able to breakout the price is expected to strengthen to the next resistance point at US$ 1,854/troy ounce.


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