akarta, Armfalcon.com– Antam’s gold price increased in trading this Wednesday (12/4/23) in response to strengthening global gold prices. At the LM Graha Dipta Pulo Gadung gold boutique, the price of 1-gram Antam gold rose by IDR 2,000 to IDR. 1,071,000 per stick.
This increase is good news after Antam’s gold price fell by IDR 5,000 in two consecutive days. The last time the price went up was April 5 or a week ago.
Meanwhile, Antam’s gold buyback price increased and was set at IDR 964 thousand per gram, an increase of IDR 2,000 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.
At the close of trading on Tuesday (11/4/2023), world gold closed at US$ 2003.14 per troy ounce. The price of the precious metal strengthened 0.66%.
This strengthening broke the negative trend of gold which collapsed in the previous two trading days.
Analyst from TD Securities, Bart Melek, explained that gold has strengthened again because market participants are now doubtful if the United States (US) central bank, The Federal Reserve (The Fed) willhawkish.
These conditions contributed to pressure on the US dollar so that gold was again hunted. The dollar index closed yesterday at 102.2 or lower than Monday’s 102.5.
“At this stage, the market is not too bothered by an increase of 25 bps. What the market is looking for is more the possibility of a policy pivot and signals if the Fed will cut interest rates in the second half of 2023,” said Melek, toReuters.
Market expectations now show that 72% of market participants expect the Fed to raise its benchmark interest rate by 25 bps in May. Compare that to last week where the figure was only 43%.
Market expectations will change if the US inflation data does not match what the market wants.
The US will announce March inflation data on Wednesday at 19:00 WIB. US inflation has fallen to 6% (year on year/yoy) in February 2023, from 6.4% (yoy) in January.
The market expects US inflation to ease to 5.2-5.4% in March.
Inflation is one of the main considerations for the Fed in determining interest rates in May. If inflation is still stubborn, it is not impossible that the Fed will remain stablehawkish.The price of gold is also under threat.
“If inflation is higher so there is a possibility of the hawkish policy being extended then it will cost more to maintain gold. Gold is not attractive,” said DailyFX analyst Warren Venketas.
CNBC INDONESIA RESEARCH
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