Gold Prices Rose amidst Stabile Global Conditions - icdx.co.id
  • (01/10 – 05/10) The prices of ICDX’s Gold ended the week higher at around $1200 level.
  • The gold prices rose although several issues were causing global worries to wind down.
  • Brexit deal move closer as Ireland backed the Brexit plan.

Market Review

Gold prices ended the week higher, although several issues relatively backed USD. Federal Reserve Chairman, Jerome Powell, said last week that the U.S interest rates may rose above ‘neutral’ and saw the economic outlook remarkably positive. With the statement, the gold which started the week optimist began to move fluctuated around $1200 level for the rest of the week.

Higher USD sentiment also effected by optimist U.S. data, such as the ISM PMI for service sector was released incredibly positive (highest since 2006), while the tier-1 U.S. employment data were released mix, with the non-farm payroll showed unfavorable figure and the unemployment rate for September figure was lower than expected.

Other issues that hold the gold prices to rose further came from U.K that there was a positive development on Brexit issue as Ireland backed Theresa May’s Brexit plan and helped the border matter between Ireland and Northern Ireland on trade and movement – reduce global risk aversion sentiment.

Italy also took parts reducing global worries as they were planning to reduce budget deficit from 2020 and lower its debt for the next 3 years.

Chart Gold 181008 - icdx.co.id

Price Performance Indicators

Previous Week % Change
GOLDUD $ 1203.2 +0.98%
GOLDID Rp 18,259,000 +2.77%
GOLDGR Rp 592,900 +2.77%
XAUUSD $ 1202.88 +0.98%
COMEX $ 1206.7 +0.88%
USD/IDR Rp 15,175 +1.78%

Market View

China’s Monetary Policy

On Sunday, China’s Central Bank announce that they were going to freeing around $100 billion for the commercial banks to boost their lending. This move were expected by the central bank to spur the China’s economic growth. Please note, that the move may have effect the gold prices this week as the announcement took place on Sunday when markets around the world close and policy changes that usually influence the gold prices.

U.S. FOMC’s Member Statement

As for the past week the USD and the gold prices were drove by the optimist statement from Jerome Powell, this week FOMC’s member speeches may be the focus for the gold prices. Note for any optimist or pessimist statement delivered by the members, especially from the voting members as the speeches from them may give significant effect on gold prices.

WEEKLY ECONOMIC DATA & EVENTS CALENDAR

Date Data/Events Actual Expectation Previous
10/Oct U.S. – PPI M/M (Sep) N/A -0.1%
11/Oct U.S. – CPI M/M (Sep) N/A 0.2%
N/A IMF Meeting N/A N/A

Source: ICDX Research




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