Gold always becomes a kind of great investment and trading goods for most people in the world. One thing which makes it a favourite thing to invest is because Gold has a stable chart of price. It was even getting higher in the future. So, most people think that Gold was so prospected to be invested.
But unfortunately, the people's assumption about the stable price of gold seemed a bit expired. It was because the gold price has been down in the trading world since the last week. In Indonesia, it might be higher, but in the world trading market, it reached the lowest price that is supposed to be.
The Gold Price Movement in May 2019
On the last week, it was reported that the gold price was getting down. It's nothing changed today. The gold prices in the world were still become downtrend, even getting weaker this week. It happened with any reasons, and one of them is because the Federal Open Market Committee (FOMC) did a plan related to the world economic condition.
The FOMC tend to show the expectation to bring down the short term interest rate. Besides, they also said that the less demand of the gold in Asia became another factor that makes the world gold prices down and down and it actually never expected for the people who like to do gold trading or make it as an investment.
Senior Vice President of MKS SA, Afshin Nabawi, said that the world gold market was under pressure after the lack of action of the increase of price which couldn't reach more than USD 1.290. he also said that this derivation also happened after there's something unimportant and not significant done by the FOMC itself.
The Derivation of Gold Price Nowadays
The spot gold prices were getting down as much as 0.4% from USD 1,270.86 per ounce to USD 1,269.69 per ounce. It was the lowest level since April 26. Another kind of US gold also got down 0,9% to USD 1.272.70 per ounce. It was a little bit worrying especially for the traders and the investors of gold.
The condition of the gold prices made the Fed kept the interest rate to stay and not changing since Wednesday. But this issue actually triggered the investors of gold in the world, because they didn't see any strong argument to consider to get down the interest rate because they thought that the number of jobs and the economic growth increased.
This issue could make the interest rate higher and it possibly increase the bullion fee. It couldn't raise the US Dollar and made the world gold prices become more expensive for investors all around the world that have other currencies. So, it really brought problems for the investor and the traders in the world who's interested in gold.
The US Dollar and its Relation to The Gold Prices
We can see that the gold prices were actually getting down since the last month. The first derivation happened because of the Fed statement which actually pushes the US Dollar. It was getting down as much as 0.5% in the last session of trading of the gold. And this derivation seems not enough to happen because it happened again.
As it mentioned before that today, the gold prices have definitely experienced another derivation. And one of the reason was another statement from the Fed itself that again, brought impact towards the gold prices today. But overall, the gold still can be a good thing to trade and to invest in the future.definitely the gold prices will be better.