Summary for gold commodity trading this week, gold price has slipped to a 2 -month low on Thursday yesterday despite a resumption of price increases in today’s trading (Friday).
Yesterday's decline in gold prices hit a level of around $ 1,872, the lowest level for a 10 -week trading period.
The factor that pushes the pressure on the price of gold is none other than the strengthening of the US dollar. Not only gold, other commodities including most major currencies in the market also experienced depreciation due to the US dollar.
Markets continue to absorb expectations for an aggressive interest rate hike by the Federal Reserve (Fed) at next week’s FOMC meeting.
The significant strengthening of the US dollar has reduced investors' attraction to gold assets in the market.
The dollar index also surpassed its highs in 2017 and recorded a 20 -year high, since the end of 2002.
Meanwhile, crude oil prices rose again following the issue of the German report no longer opposing Russia's oil embargo, which is seen to lead to a reduction in supply in an already risky oil market environment.
German Economy Minister Robert Habeck stated to find other solutions to replace the Russian oil supply.
Germany had previously been heavily dependent on crude oil supplies from Russia and that is why there was opposition to Russian oil sanctions.
Russia is seen as unafraid even as analysts estimate Russian oil production will fall by 17% for 2022.
Any developments from the petroleum exporting countries (OPEC) will also be monitored which will also have an impact on the current movements of the crude oil market.
