Gold Price Fell to Below $1200 Psychological Level - icdx.co.id
  • In a week (13/08 – 17/08) the price of ICDX’s Gold ended down below $1,190 level.
  • Turkey financial crisis was the biggest issue which put Gold price on pressure.
  • U.S. & China are planning to meeting 22-23 August.

Market Review

Precious metal gold prices dropped and hit the lowest level in more than a year as USD rose due to concern on Turkey’s financial crisis. The Turkish Lira had fallen more than 30% against USD but successfully pared the losses at the end of the week as the United States ruled out removing steel tariff on Turkey and after securing $15 billion investment from Qatar.

While Turkish’ issues had made gold wildly touched its 19-month lowest level, another issue that may affected the gold price was the news on Thursday that the U.S’ Secretary of Treasury for International Affairs will meet the Chinese to talk over the months-long trade war – reduce the anxiety of further trade war between U.S and China.

Meanwhile, for the past week the lackluster demand for gold due to Turkish’ financial crisis also seen through the SPDR Gold Trust holding that slowed around 1.8% to 772.24 tons last Friday.

Chart Gold Move Lower 180820 - icdx.co.id

Price Performance Indicators

Previous Week % Change
GOLDUD $ 1,184.50 -0.78%
GOLDID Rp 17,317,000.00 -0.53%
GOLDGR Rp 562,400 -0.69%
XAUUSD $ 1,184.25 -0.78%
COMEX $ 1,184.20 -1.23%
USD/IDR Rp 14,619 0.25%

Market View

US – China Trade War Easing?

As schedule, both countries are expected to hold meeting at 22-23 August. The Chinese will be represented by Vice Minister of Commerce, Wang Shouwen, while AS will be sending David Malpass, Treasury undersecretary, to the meeting. Will the meeting successfully resolved the month-long trade war and put pressure on gold price or pessimism over the US – China trade war meeting will support the gold price?

U.S Jackson Hole Symposium May Focus on Rates

The symposium will be hold at 24-25 August. At the symposium, Fed Chair Jerome Powell is scheduled to give is remarks, titled “Monetary Policy in a Changing Economy”. With that title, Powell’s remarks may have broader theme regarding the monetary policy, but note for any words regarding the U.S rate hikes, while on September meeting almost confirmed that U.S will rise another basis point. Will this issue move the gold price?

WEEKLY ECONOMIC DATA & EVENTS CALENDAR

Date Data/Events Actual Expectation Previous
22-23/Aug U.S. & China – Trade War Meeting N/A N/A
23/Aug U.S. – FOMC Meeting Minutes N/A N/A
24/Aug U.S. – Durable Goods Order (Jul) -0.50% 0.80%
24-25/Aug U.S. – Jackson Hole Symposium N/A N/A
24/Aug U.S. – Fed Chair Jerome Powell Speech N/A N/A

Source: ICDX Research




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