Price Performance Indicator

·  In a week (17/01 – 21/01) the price of ICDX’s Gold moved higher 0.78%.

·  The sentiment mainly focused on heightened geopolitical tension.

Market Review

The ICDX’s gold moved higher 0.78% on the past week, as higher risk sentiment pushed the gold prices. The risk aversion became the main issue and people around the world turn into gold asset to secure their portfolio.

Last week, tension between Ukraine and Russia were heightened as war potential were scared to be happened. Adding the sentiment, US also added more military defense budget as much as $200 billion for Ukraine. The news added more concerned to the market as the tension may be higher and war potential is on the edge.

Besides tension between Ukraine and Russia, the gold prices movement were also relatively corrective as market players were waiting for the Fed meeting on 25-26 January that may cause volatility to gold prices, while sentiment from US economic data were relatively small, thus market player focused more on the tension.

Market View

The Fed Meeting's

The Fed meeting will took place at 25-26 January, with market participants around the world were waiting for the outcome of the meeting's. The main issues of the meeting will be the pace of stimulus finalization, with the Fed's target should be finished before raising the US interest rates, while the other issue were seeing how hawkish the Fed on raising the interest rates, with participants were starting discounted the sentiment into prices. Will the meetings this week burdening the gold prices or moving the gold prices higher as the Fed turning down the market's expectation?

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