The price of gold precious metal shows its glitter since the coronavirus pandemic (Coronavirus Disease 2019 / Covid-19) spread throughout the world which made the global economic prospects bleak, leading to a recession.
The background of the precious metal's soaring to a nine-year high was triggered by a surge in stimulus by the world's central bank and the government to support the economy so that it could spin again due to Covid-19.
Massive stimulus becomes a supporter of gold prices to strengthen because of the real threat of inflation going forward. Gold as a hedging or safe-haven asset is flooded with demand when there is a threat of high inflation and a decline in the exchange rate.
The price of gold precious metal produced by PT Aneka Tambang Tbk (Antam) for a 100-gram piece which is commonly used as a reference for this week increased by Rp 33,000 or 3.67% to Rp 931,120 / gram on Saturday (7/25/2020) from Rp 898,120 / gram on last Saturday (7/18/2020).
Gold Gains from Pandemics
The gold price will be charged with income tax 22 (Article 22 of Income Tax on gold bars). In accordance with PMK No. 34 / PMK.10 / 2017, gold bullion purchases are subject to PPh 22 of 0.45% (for NPWP holders and 0.9% for non NPWP).
Meanwhile, the price of Antam's gold prints in Pegadaian, the size of 1 gram this week, Saturday (7/25/2020) rose Rp 34,000 or 3.52% to Rp 999,000 / gram from the price last Saturday (7/18/2020). The price of gold offered by Pegadaian per gram includes tax. PT Aneka Tambang Tbk (Antam) is a state-owned gold producer which is one of the suppliers of Pegadaian.
The price of the gold precious metal is indeed being benefited by the coronavirus pandemic because of its impact on the world economy into recession. Gold investment which is considered as a hedge (hedging) in times of economic uncertainty due to the coronavirus pandemic, shows that this one instrument is the most sought-after safe-haven asset when the economic situation is on the brink of recession.
Under current conditions, WingCapital predicts that the price of gold is predicted to reach US$ 3,000 / troy ounce but within the next 3 years. Meanwhile, Ole Hansen, Chief Commodity Strategist at Saxo Bank, predicts that gold will set a record high next year and that in the long run gold will reach US $ 4,000 / troy ounce.
Future Gold Movements
Referring to the rules in the market, one troy ounce is equivalent to 31.1 grams, so the amount of US $ 4,000 / troy ounce projected by Ole Hansen is converted by dividing the number by 31.1 grams, the result is US$ 128.62 per gram. Assuming a rupiah exchange rate of Rp 15,000 / US $, the gold price prediction is at Rp 1,929,300 / gram or almost 2 million rupiahs.
Gold movement by using the Daily period (Dailly) from the Boillinger Band (BB) indicator through the method of the area of the upper limit (resistance) and lower limit (support). At present, gold is in the resistance area, with the BB line widening, so the next move is likely to continue to rise further in the medium to long term.
Meanwhile, the Moving Average Convergent Divergent (MACD) indicator, which uses moving averages to determine momentum, with the MA line still playing in positive territory, then the likelihood of gold movement still strengthens further.
At the moment RSI is in the 81 areas, with the line still moving up, then gold is still likely to strengthen. But it should be noted, RSI which is already in the overbought or overbought area, the increase will be limited or it can be consolidated (correction) for the short term.
