Jakarta, CNBC Indonesia – The price of gold produced by PT Aneka Tambang (Antam) Tbk. or what is known as Antam’s gold was observed to be corrected in trading Saturday (19/8/2023).
Launching data from the official website of PT Antam, metalmulia.comat the LM Graha Dipta Pulo Gadung gold boutique, the price of 1 gram of gold today costs IDR 1,057,000/stick, down IDR 3,000.
Antam’s gold price correction continues the weakening since yesterday. This week, Antam’s gold price tends to weaken.
On the same hand, the repurchase price or buyback Antam’s gold is set at IDR 936,000 per gram, this price is also down by IDR 3,000 from the previous trade.
The price of Antam’s gold that is traded varies in terms of size. For more details, see today’s gold price data.
|Price per stick
|TIN Price (+0.45% Tax)
The following is a chart of Antam’s gold price movements:
The weakening of Antam’s gold price today is in line with the movement in world reference gold prices which are also being corrected in trading this weekend.
During trading last Friday, the price of gold on the spot market closed slightly down 0.04% at US$ 1,888.19 per troy ounce. The weakening immediately made gold create three bad records at once.
The first bad record is weakening for five consecutive days. The price of gold has not been able to strengthen even this week. The precious metal weakened from Monday to Friday this week.
The weakening for five consecutive days is the first since 16-22 June 2023 or almost two months.
The second worst record is gold thrown from the psychological level of US $ 1,900. Gold closed at US$ 1,891.76 per troy ounce on Thursday this week. This is the first time gold has closed below US$1,900 since March 10, 2023 or more than five months. After Thursday, gold was unable to rise and is now struggling at the level of US$ 1,800.
The next worst record is a week of weakness. In this week, gold weakened by 1.31%.
This weakness extended the pain of gold to four weeks. In those four weeks, the price of gold has fallen 3.67%.
The weakening of the precious metal for four consecutive weeks is also its worst record since the end of January-February 2023 or the worst in almost the last six months.
This is due to the crashing of expectations of market players to see a shift in interest rate policy in the US.
Market participants originally expected that the US central bank (Federal Reserve/The Fed) would start cutting interest rates in September.
However, that hope was crushed by the continued strength of US economic data and the minutes of the Federal Open Market Committee (FOMC).
The minutes of the July FOMC meeting released in the early hours of Thursday Indonesian time showed most officials prioritized the fight over inflation
“With inflation still well above the Committee’s long-term goal and the labor market remaining tight, most participants continue to see significant upside risks to inflation and remain in need of further monetary policy tightening,” said the minutes of the FOMC meeting.
This further adds to uncertainty in the market, because the Fed is fighting inflation by raising interest rates. Therefore, the Fed’s stance on market projections could still be tighter for the next meeting in the remainder of the year.
The potential for an increase in the Fed’s interest rate will immediately boost the US dollar and yields on US government bonds.
The dollar index is now moving in the range of 103-105 which is its strongest position since June 7 2023 or more than two months.
yield (yield) US government bonds with a tenor of 10 years jumped to 4.2-4.3% which is the highest position since June 2007 or the last 16 years. The strengthening of the US dollar makes gold even more expensive making it unaffordable to buy.
Gold also does not offer yield so increase yield US government debt makes gold unattractive.
CNBC INDONESIA RESEARCH
Disclaimer: This article is a journalistic product in the form of views from CNBC Indonesia Research. This analysis does not aim to persuade readers to buy, hold, or sell related investment products or sectors. The decision is entirely up to the reader, so we are not responsible for any losses or profits that arise from that decision.
There’s a Jumbo Discount, Antam’s Gold Price is Even Cheaper Today