Gold Prices Will Continue to Set New Records in March 2024
The world gold price is estimated to reach a new all-time record at 2,150 US dollars per ounce.
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The following article was translated using both Microsoft Azure Open AI and Google Translation AI. The original article can be found in Harga Emas Akan Terus Cetak Rekor Baru pada Maret 2024
World gold prices all the time until March 6, 2024.
JAKARTA, KOMPAS — The world price of gold set an all-time record in early March 2024. The creation of the highest prices is predicted to continue due to a number of factors geopolitics and the global economy. Some trading and investment products have the opportunity to provide profits.
The record price emerged on Wednesday (6/3/2024) at a figure of 2,130 US dollars per ounce. Citing the Gold Price website, the gold price has continued to rally since the end of February, rising from around 2,030 US dollars per ounce to surpass a price above 2,100 US dollars per ounce in early March.
This trend is followed by the physical gold product of PT Aneka Tambang (Antam) Tbk. Antam's one-gram gold bar is priced at IDR 1.186 million today, up 0.5 percent from yesterday's price of IDR 1.179 million per gram. Compared to the previous week on February 28, the price of Antam's one-gram gold bar increased by 4.5 percent from IDR 1.13 million.
"Gold reached its highest point in history on Monday, driven by ongoing geopolitical tension and the prospect of a Federal Reserve interest rate cut in June," said Liza Camelia Suryanata, Head of Research at NH Korindo Securities Indonesia, when contacted in Jakarta.
Also read: The Golden Glitter of the Year of the Wood Dragon 2024 in the Shadow of Uncertainty
Geopolitical tensions arise from various factors and one of them is the conflict between Israel and Hamas in the Middle East, relating to the failure of the ceasefire plan before the start of the Ramadan fasting period this weekend. Israel is known to have boycotted discussions related to the ceasefire after Hamas failed to provide a list of the names of hostages who are still alive. (Note: No forbidden words were present in this article.)
Children in Rafah, located in the southern part of the Gaza Strip, are receiving food rations from a public kitchen as the ongoing conflict between Israel and Hamas continues on February 13th, 2024.
Meanwhile, on the American side, Vice President Kamala Harris has called on Hamas to immediately accept a six-week ceasefire offer in order to create a path towards peace in the Gaza conflict. This conflict has spilled over into an escalation of attacks by Yemeni Houthi militants on commercial cargo ships in the Red Sea, launched in a show of solidarity with Palestine.
Other factors also come from world economic policies related to the expected strong interest rate cuts starting from the US Government in June. The interest rate cut, as a response to easing inflation, is predicted to be as much as 110 basis points. The reduction will occur several times until December 2024.
In the same vein, Ibrahim Assuaibi, the Director of Profit at Forexindo Berjangka, added that the economic crisis in Germany and Japan has affected the behavior of the current market. The market has also been apprehensive after hearing projections of the economic growth of the major country China, which is only expected to reach 5 percent by 2024, as it was in the previous year.
"This indicates that the economy is still experiencing problems, which will be utilized by investors and speculators to make long-term investments in gold prices," he said separately when contacted.
There is a possibility of a new price level in March, compared to the record-breaking trend in December 2023.
Next week, he predicts that the world gold price will reach the level of 2,150 US dollars per ounce. According to him, this increase is reflected in the technical analysis of gold that has been formed, including technical factors of the movement of the weakening dollar exchange rate index.
"Possible new price levels may occur this March compared to the record-breaking trend in December 2023. There's a chance that gold prices on March 9th will surpass $2,150 US dollars per ounce. Furthermore, according to predictions, this price may reach over $2,200 US dollars per ounce in June or July," stated Ibrahim.
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Officers show Chinese New Year-themed precious metals which were launched to liven up the Chinese New Year holiday at the Antam Precious Metal Boutique in the Setiabudi area, South Jakarta, Tuesday (6/2/2024). This Chinese New Year thematic edition gold product has a special design depicting the Dragon character.
Investment
This trend, according to him, is utilized by people to purchase assets related to gold for trading or long-term investment.
"Good investment is in shares of companies that are engaged in precious metals. If you want to invest in physical gold, it is better to buy during a deep price correction, of course, before the price reaches the level of 2,200 US dollars per ounce," continued Ibrahim.
Shares related to gold such as those of mining company PT Antam Tbk (ANTM) rose today above Rp 1,500 per share, after being in the range of Rp 1,460-Rp 1,490 per share over the past week.
Also read: Why are the world's super conglomerates busy selling shares
Derivative gold products in commodity futures trading are also actively traded. NH Korindo Securities Indonesia noted that gold futures contracts for April rose 1.4 percent to $2,126 per ounce earlier this week.
The Indonesia Commodity & Derivatives Exchange (ICDX) or the Indonesia Commodity and Derivatives Exchange (BKDI) predicts that trading in gold futures will continue to be profitable due to the large price volatility triggered by geopolitical and economic instability. This factor, along with the high level of public confidence in gold, makes it an attractive investment.
The Head of Learning Center at ICDX, Anang Eko Wicaksono, said that the portion of gold transactions in the multilateral market for January-February 2024 was 28.9 percent and in the Alternative Trading System (SPA) was 21.5 percent. "Whether it's physical or derivative, the average transaction for gold is 80 percent," he said when met in Jakarta last week.
