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VISTORBELITUNG.COM,TANJUNG PANDAN, BANGKA BELITUNG - Unpleasant news has arrived for gold investors and owners. In recent times, gold prices have been observed to experience a significant decline, leaving many wondering. After once being a prime asset amidst global uncertainty, why are gold prices now "freefalling"?
Tribunnews monitoring from various sources indicates a downward trend in gold prices, both in the global market and the domestic Antam gold price. So, what are the main factors triggering this phenomenon? Here is an in-depth analysis from economic and commodity market experts:
One of the main factors that often becomes the "enemy" of gold prices is the strengthening value of the United States dollar. Gold, which is generally traded in USD denominations, becomes more expensive for investors holding currencies other than the dollar when the dollar strengthens. As a result, demand for gold potentially decreases, which automatically pushes its price down.
Global market attention is always focused on every policy and signal given by the US central bank, The Federal Reserve (The Fed). Expectations of an increase in the benchmark interest rate by the Fed can give a negative sentiment towards gold. Rising interest rates make the US dollar more attractive as an investment instrument, while gold, as a non-yielding asset, becomes less desirable. Conversely, if there are indications that the Fed will ease its monetary policy, gold prices usually get a boost.
Gold has long been known as a "safe haven" asset or a safe place for investors amidst global economic and political turmoil. When geopolitical tensions ease and the market feels more stable, investors tend to reduce their holdings of safe haven assets like gold and switch to riskier assets that offer higher potential returns, such as stocks. The relatively calmer global conditions in recent times could be one of the factors driving down demand for gold.
After experiencing a significant period of price increases, it is not uncommon for gold investors to take profit. This wave of selling, although natural, can put downward pressure on gold prices in the short term. Overall market sentiment also plays an important role. If risk-on sentiment in the market increases, investors tend to be bolder in investing in assets considered riskier but with the potential for greater returns, leaving gold as a less attractive option.
Although in the long term the factors of physical gold supply and demand (for jewelry, industry, and investment) can affect prices, in daily or weekly price fluctuations, factors such as the US dollar value, monetary policy, and market sentiment usually have a more significant impact.
The current decline in gold prices serves as a reminder for investors to remain vigilant and closely monitor global economic and political developments. Changes in monetary policy, exchange rate fluctuations, and geopolitical dynamics will continue to be key factors influencing the movement of gold prices in the future.
For those of you who invest in or own gold, it is important to conduct careful analysis and consider various factors before making decisions. The gold market is always full of surprises, and a good understanding of global sentiment will help you manage investment risks.