Gold Weakens Further as Investors Shift to Dollar Assets
Jakarta. Global gold prices remained under pressure on Monday after failing to hold a key support level, while domestic gold prices tracked the decline as investors shifted toward higher-yield dollar assets.
Spot gold slipped 0.22% to $4,540.06 per troy ounce as of 12:32 a.m. New York time on May 18, according to Goldprice.org. Analysts at Dupoin Futures said the bearish momentum remained dominant after bullion broke below the important support area of $4,580 per troy ounce, opening room for deeper correction in the medium term.
“After breaking below the $4,580 per troy ounce support level, gold prices attempted a rebound. However, the recovery was not strong enough to reverse the still-dominant bearish trend,” Dupoin Futures analyst Geraldo Kofit said in a research note on Monday.
He said that if bearish pressure continues, gold prices could decline toward the nearest support level at $4,418 per troy ounce.
"The next downside target is projected around $4,304 per troy ounce,” Geraldo said.
Beyond technical factors, Geraldo said pressure on gold was also coming from a strengthening US dollar and rising US Treasury yields, which made dollar-denominated assets more attractive compared to non-yielding bullion.
“The situation is encouraging investors to shift toward dollar-based instruments that offer higher yields compared to gold, which does not generate returns,” he said.
He added that markets still expect the Federal Reserve to keep interest rates elevated for longer as US inflation and labor market data remain relatively resilient.
Improving global market sentiment has also reduced demand for safe-haven assets such as gold, with investors rotating back into riskier instruments that offer potentially higher returns, he said.
“With both technical and fundamental pressures still weighing on the market, gold prices are likely to remain vulnerable to further declines as long as they fail to break back above the main resistance area,” Geraldo said.
Meanwhile, domestic gold prices also weakened in line with the global trend. Data from Logam Mulia showed that Antam gold prices fell Rp 5,000 to Rp 2,764,000 ($156.42) per gram on Monday.
Antam’s buyback price also declined Rp 7,000 to Rp 2,569,000 per gram.
Antam Gold Prices on Monday, May 18:
- 0.5 gram: Rp 1,432,000
- 1 gram: Rp 2,764,00
- 2 gram: Rp 5,468,000
- 3 gram: Rp 8,177,000
- 5 gram: Rp 13,595,000
- 10 gram: Rp 27,135,000
- 25 gram: Rp 67,712,000
- 50 gram: Rp 135,345,000
- 100 gram: Rp 270,612,000
- 250 gram: Rp 676,265,000
- 500 gram: Rp 1,352,320,000
- 1000 gram: Rp 2,704,600,000
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