Jakarta, Armfalcon.com– Antam’s gold price plunged in the second trade this week (18/4/23), following the drastic drop in global gold prices. At the LM Graha Dipta Pulo Gadung gold boutique, the price of Antam’s 1-gram gold fell significantly by Rp. 12,000 to Rp. 1,054,000 per stick.
It is rare for Antam’s gold price to drop to IDR 12,000. The attenuation is usually around IDR 4,000-6,000. During March-April this year, only five times did Antam’s gold price drop by more than IDR 12,000 a day.
Meanwhile, the repurchase price or buyback Antam’s gold also fell and was set at IDR 948 thousand per gram, the price also decreased by IDR. 12,000 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.
The drop in Antam’s gold price followed the world’s gold price. At the close of trading Monday (17/4/2023), gold closed at US$ 1,994.77 per troy ounce. The price of the precious metal fell 0.41%.
The weakening also knocked gold out of the psychological level of US$ 2,000 per troy ounce for the first time since April 10 or last week.
Analyst from Kitco Metals, Jim Wyckoff, explained that the weakening of gold was caused by a number of factors, ranging from market expectations regarding the Fed’s policy to profit taking.
Market expectations regarding the Fed’s policy made the US dollar strengthen andyieldUS government debt rose sharply.
The dollar index strengthened to 102.10 at the close of trading yesterday, its highest in the last five days.
YieldsThe 10-year US government bond was at 3.59% yesterday, the highest since March 10, 2023.
“The strengthening of the dollar and yields as well as the profit-taking actions of traders who took profits put pressure on gold. The price of gold weakened,” said Wyckoff, toReuters.
A stronger US dollar makes gold more expensive and unaffordable for investment. Gold also offers no yields oryieldso reinforcementyieldmakes gold less attractive.
Despite weakening, Wyckoff still believes gold can strengthen in the future.
“I wouldn’t be surprised if gold set a new record in the coming weeks,” he said.
One of the determinants of the movement of gold is the decision of the Fed. If the Fed starts to soften then it is believed that the precious metal will rise.
The CME FedWatch survey shows that 86% of market participants are betting that the Fed will raise interest rates by 25 bps in May.
The Fed is then expected to hold interest rates on hold in June.
CNBC INDONESIA RESEARCH
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