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US Headlines as Main Focus, Gold has Gone Weak as Greenback Gains
US Headlines as Main Focus, Gold has Gone Weak as Greenback Gains
Monday, 14 June 2021

Price Performance Indicator

Product

Previous Week

% Change

GOLDUD

$1,891.30

-0.80%

GOLDID

Rp 27,000,000

-0.90%

GOLDGR

Rp 878,100

-1.20%

XAUUSD

$1,889.97

-0.71%

COMEX

$1,892.00

-0.66%

USD/IDR

Rp 14,297

-0.40%

GOLDUD Focus:

  • (04/06 – 11/06) Gold prices closed the week with a correction of 0.80%
  •  Immediate focus awaited from Thursday’s FOMC minutes

The gold contract GOLDUD has closed the week with a correction, which was significantly occurred at the end of the week, to record a weekly correction of 0.80% to $1,891.30 Troy Ounce. After the market absorbed the sentiment from the 3 employment data released on the previous week, this week the market's focus seems to be on the Greenback’s performance, especially with the anticipation and back-to-back market expectations on the Fed's future stance, which is based on recent data releases - inflation figures.

Inflation data released last week showed a fairly good increase in inflation, thus making some analysts to expect the increase could lead the series to its highest annual spike in the last 13 years. Adding to the positive issue, the consumer sentiment data released last Friday also managed to show a fairly good increase and both data succeeded in making the USD value appreciate against a number of other assets including gold.

Furthermore, the developments in inflation growth may affect the Fed's view of economic conditions, especially on interest rate developments, while in several statements by members of the Fed, a number of members are considering a change in the direction of US monetary policy. Finally, it's worth noting that the latest news on US policymakers' agreement on an eight-year, $1.7 trillion infrastructure spending plan, to be approved by the White House, offered a fresh ray of optimism to markets.

With these data and conditions, the market's focus is now shifting to the FOMC meeting scheduled this week, so that if there is a statement related to the optimism presented by recent economic data, it can affect the gold price even more severe.


Market View

USD May Be Guided by the Fed Meetings This Week

After USD pushed by several of positives data released last week and causing higher expectation on US economic recovery, this week scheduled FOMC Meetings will be the main focus for market players. Although no changes on interest rate were expected, market players are looking to additional cues from the Economic Projection regarding the terms and views from FOMC’s official. This event may causing the USD to move and eventually affecting the gold prices.

WEEKLY ECONOMIC DATA & EVENTS CALENDAR

Date

Data/Events

Actual

Expectation

Previous

15-Jun

US –  Retail Sales

-

-0.6%

0.0%

15-Jun

US - PPI m/m

-

0.5%

0.6%

17-Jun

US - FOMC Rate & Projection Statement

-

<0.25%

<0.25%

17-Jun

US - Unemployment Claims

-

360K

376K

Riset Indonesia Commodity and Derivative Exchange

Gold Weekly Newsletter


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