Rising High!, Antam’s Gold Price Will Record to IDR 1,100,000?

Jakarta, Armfalcon.com – The price of gold bars produced by PT Aneka Tambang Tbk. or what is known as Antam’s gold shot up in trading Friday (4/5/2023). The high increase occurred following the world gold price which touched an all-time high.

According to data from the official website of PT Aneka Tambang Tbk., metalmulia.com, Antam’s gold price today shot up Rp. 15,000/gram. Gold weighing 1 gram is priced at IDR 1,077,000/bar. The highest gold record was at Rp. 1,094,000/bar which was achieved on March 24.

With the predicted world gold price that will continue to rise, Antam’s gold price certainly has the opportunity to follow suit, not ruling out the possibility of breaking the all-time record high of IDR 1.1 million per stick.

As is well known, the world gold price this morning penetrated US$ 2072.19/troy ounce, equaling the all-time high of US$ 2072.49/troy ounce which was reached in August 2020.

The price of gold soared after the US central bank (The Fed) announced an increase in interest rates by 25 basis points to 5% – 5.25%, the highest since August 2007.

Since March 2022, the Fed has raised interest rates 10 times for a total of 525 basis points. The increase was very aggressive, aimed at reducing inflation.

The increase was in accordance with market participants’ expectations, besides that the Fed gave a signal that this could be the end of the interest rate hike period.

“The most noteworthy part of the Fed’s statement is the outlook for monetary policy going forward, the (FOMC) policy makers are softening on the need for additional monetary tightening,” said Jay Bryson, chief economist at Wells Fargo, as reported by Reuters on Thursday (4/5) /2023).

After the statement, the market saw that the Fed had reached its peak in interest rates, as seen from the CME Group’s FedWatch tool. Many even predict that Jerome Powell et al will cut interest rates in July.

Data from FedWatch shows there is a 52% probability that interest rates will be cut by 25 basis points.

Several well-known investment banks previously predicted that gold prices would continue to climb this year. Morgan Stanley, for example, provides a price projection of US$ 2,200/troy ounce.

UBS is also the same, projecting that world gold prices will touch US$ 2,200/troy ounce in the next 11 months. One of the triggers is that central banks in various countries will still buy up gold.

[Gambas:Video CNBC]