Even though it’s gone down this much, Antam’s gold price is still expensive

Jakarta, Armfalcon.com – The price of PT Aneka Tambang Tbk’s bars, known as Antam’s gold, fell during trading on Saturday (13/5/2023). World gold prices fell for three consecutive days dragging Antam’s gold price movement.

Based on data from the site metalmulia.com, Antam’s gold fell by Rp. 4,000 per gram today. Gold weighing one gram is priced at IDR 1,060,000/bar.

The world gold price fell 0.22% to US$ 2,011/troy ounce in trading last Friday. Two days earlier, the decline was recorded at 0.7% and 0.2%.

Since touching an all-time high of US$ 2,072/troy ounce on May 4, world gold has plummeted the day after, and has yet to record an impressive performance.

The already high price of gold certainly sparked action profit takingMoreover, the US central bank (The Fed) is predicted to maintain high interest rates for quite a long time. This is because the strong US labor market makes it difficult for inflation to fall.

Last Friday night, the US Department of Labor reported that throughout April the US economy was able to absorb 253,000 workers outside the agricultural sector (non-farm payrolls). The figure is far higher than Wall Street’s estimate of 180,000 people.

The unemployment rate fell to 3.4% from 3.5% the previous month. In fact, Wall Street projected an increase to 3.6%. This 3.4% unemployment rate equaled the lowest record since 1969.

Then the average hourly wage rose 0.5% month-to-month, higher than expectations of 0.3% and the highest in the last year. On a year-on-year basis, the average wage rose 4.4% which was also higher than expectations of 4.2%.

A strong labor market will keep people’s purchasing power high, as a result it will be difficult for inflation to come down. The Fed can hold high interest rates longer, and trigger a correction in world gold prices. Antam’s gold was also dragged away.

[Gambas:Video CNBC]