Russia-Ukraine Conflict Still Volatile, World Gold Prices Start Soaring!

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Russia-Ukraine Conflict Still Volatile, World Gold Prices Start Soaring!


In the midst of the heated Russia-Ukraine conflict, energy commodity prices seem far behind other commodity prices, including precious metals. However, throughout this week, the price of gold began to appear to accelerate the pace of strengthening.

Spot gold prices this week stayed above US $ 1,900 per troi ounce. In a week, gold prices rose 3.34%. While the price of platinum rose 12.41% since the beginning of the year to US $ 1,088 per troi ounce. Palladium even rose significantly, namely 51.73% to US $ 2,889 per troi ounce.

Global Kapital Investama analyst Alwi Assegaf said the Russia-Ukraine war, which are energy-producing countries, caused the attention of market participants to focus on this sector.

Also Read: Antam's Gold Price Increases by Rp. 15,000 to Rp. 1.005,000 Per Gram On Saturday (5/3)

"Russia is one of the largest gas producers in the world. In fact, for supply in Europe itself, Russia supplies about 30 percent of oil and gas in Europe. No wonder the price of oil is high," said Alwi, Friday (4/3).


Concerns about the disruption of oil and gas availability have also spurred the market to switch to substitute energy commodities, namely coal. As a result, coal prices jumped to touch US$ 400 per tonne, or up more than 200% so far this year.

Indeed, precious metals as safe haven instruments are targeted when conditions are uncertain, such as when the Russia-Ukraine conflict escalates. "Safe havens are usually targeted when geopolitical conditions are uncertain," said Faisyal, Monex Investindo Futures Analyst, Friday (4/3). ).

However, safe haven options are not only precious metals. Faisyal assesses that the market is looking for the US dollar as a safe haven.

There is competition between the US dollar and traditional safe havens such as precious metals," said Faisyal.

Director of TRFX Garuda Berjangka Ibrahim Assuabi also said that the price of precious metals tends to be restrained by the Fed's plan to increase interest rates this March. But going forward, the price could still rise even higher.

Alwi believes that there are two factors that will push the price of precious metals up. First, safe haven demand will rise amid the Russian conflict. Second, the threat of global inflation due to rising commodity prices. "Gold is a means of hedging against inflation," he said.

But Faisyal assessed that the Fed's interest rate policy sentiment will be more dominant in influencing gold prices going forward. Until the end of the year, Faisyal predicts the price of gold will be around the level of US $ 1,900 per troi ounce.




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