GOLD GOING TO $2000?

Gold Trading: As predicted by many market players, the Fed has finally raised its interest rate again by 25 bps. However, there is an anomaly where even though the Fed's interest rate has increased, the price of gold has actually increased.

But why？ This is because market participants feel that the monetary policy implemented by the US in this case the Fed will still be tight going forward, automatically with the current high interest rates people will reduce spending activities such as purchasing assets or business development, especially the credit sector and this also makes bonds it will be more interesting.

Apart from that, the press release issued by the Fed stated that their inflation target is 2%. And in his speech, Powell also emphasized that the Fed has not ruled out successive interest rate hikes, which means that there is a possibility of further hikes, according to many observers, in September this year.

The tight monetary policy adopted by the Fed means that US economic activity will not rotate optimally and it is not impossible that recession fears that were echoed at the beginning of the year related to the aggressiveness of the Fed could again weigh on the market.

Apart from factors from the Fed's policy, the increase in gold prices was also supported by sentiment towards the existence of a gold-based currency pioneered by Brazil, Russia, India, China and South Africa, known as the BRICS.

The Russian foreign ministry confirmed that the BRICS will hold a meeting in August to further discuss the gold-based currency.

Also, based on CME Group data, Gold Open Interest has doubled from 5000 transactions to 10000 transactions at a price of $ 2000. What does this mean？ This means that many large institutions expect the price of GOLD COULD to be up to $ 2000 .

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