No wonder, Antam’s gold price has soared to this level

Jakarta, Armfalcon.com– Antam’s gold price rose significantly on Friday trading (14/4/23) following the strengthening of world gold prices which again scored an all-time high. At the LM Graha Dipta Pulo Gadung gold boutique, Antam’s 1-gram gold price strengthened by IDR Rp. 1,084,000 per stick.

Meanwhile, Antam’s gold buyback price increased and was set at IDR 977 thousand per gram, an increase of IDR 9,000 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 Thursday (13/4/2023), gold closed at US$ 2,039.74 per troy ounce. The price of the precious metal soared 1.24%.

This price is the highest since March 8 2022 or the last 13 months.

Gold prices rose after the US producer price index (IPP) slumped. The weakening index further strengthened market expectations that the US central bank The Federal Reserve (The Fed) will soften soon.

IPP contracted 0.5% (month to month/mtm) in March 2023, from 0% in Feb. Annually (year on year/yoy), IPP eased to 2.7% in March from 4.9% in February.

IPP slumped far below market expectations, namely a contraction of 0.1% (mtm) and slumped 2.8% (yoy). The sloping IPP complements a number of data regarding price movements in the US which continue to slope.

US inflation surprisingly fell to 5% (yoy) in March this year. Inflation was not only much lower than 6% (yoy) in February but also far below market expectations (5.1%).

On a month-to-month/mtm basis, US inflation eased to 0.1% in March 2023, from 0.4% in February.

IPP and sloping inflation are a signal that the economy of Uncle Sam’s country will start to cool off after growing relatively fast, namely 2.6% (yoy) in the fourth quarter of 2022.

This condition will support the Fed to immediately soften its monetary policy.

The minutes of the Federal Open Market Committee (FOMC) meeting that came out on Wednesday this week showed projections that the US economy could enter a recession.

“Economic data confirms market estimates that the interest rate hike cycle is nearing its end. This makes gold even more attractive,” said Heraus analyst Alexander Zumpfe, quoted by Reuters.

The market is now betting that the probability of an interest rate hike of 25 bps is now 69% in May. Many market participants also predict that the Fed will start holding interest rates in June this year.

A dovish policy will make the US dollar slump making gold more affordable for investment.

The dollar index itself fell to the position of 101.01 or its lowest since April 21 2022 or almost the last year.

“Sloping inflation and dovish Fed policy expectations are positive underlying for gold,” said High Ridge Futures analyst David Megger, quoted by Reuters.

CNBC INDONESIA RESEARCH

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