Considered Safe for Investment, Gold Price Nears US$2,000 per Troy Ounce

Some investors are shifting their portfolios to gold commodities due to the high inflation rate in the United States (US), as well as the Russian invasion of Ukraine. This uncertainty has driven gold prices upward, nearing the US$2,000 per troy ounce (oz) level.

According to Yahoo Finance data, the price of gold was traded at US$1,994.4 per oz on Monday, March 7, 2022, until 9:35 WIB in Asian market trading. This price is equivalent to Rp 922,000 per gram (exchange rate Rp 14,383 per US$).

This price is up US$27.8 per oz (1.41%) from the previous close. It is also the highest level since August 18, 2020.

On March 8, 2021, the price of gold was still at US$1,677.7 per oz. This means that in the last year, the price of gold has increased by 18.88% (year on year/yoy). Compared to the end of last year's position of 1,827.5 per oz, the price of gold has increased by 9.13% (year to date/ytd).

According to the US Bureau of Labor Statistics (BLS), inflation in the US reached 7.5% (yoy) in January 2022. This figure is the highest in several decades. This high inflation has led fund managers to shift some of their investments to gold commodities, which are considered to be able to provide future profits.

From Europe, Western countries imposing sanctions on Russia for its attack on Ukraine are adding to the uncertainty in the global financial market. Amidst the threat of high inflation in America and uncertainty in Ukraine, gold has become a safe haven asset for investors.