Jakarta, CNBC Indonesia – Price of gold produced by PT Aneka Tambang (Antam) Tbk. or what is known as Antam gold, was observed to strengthen again and set another record high on Tuesday (2/4/2024).

According to data from the official PT Antam website, metalmulia.com, at the LM Graha Dipta Pulo Gadung gold boutique, the price of 1 gram of gold today is IDR 1,256,000/piece, an increase of IDR 2,000 per gram from last Monday's price. This increase also made Antam set a record for two consecutive days.

On the same hand, the repurchase price or buyback Antam gold is set at IDR 1,148,000 per gram, also an increase of IDR 2,000 per gram from last Monday's price position.

The following is a graph of Antam's gold price movements:

As is known, Antam's gold price previously set a record high in history at IDR 1,254 million per gram last Monday

Antam's gold price movements still follow world gold price movements. In trading last Monday, World gold prices closed up 0.82% at US$ 2,250.59 per troy ounce.

Meanwhile, this morning as of 08:43 WIB, world gold prices tended to slope slightly, namely down slightly by 0.08% to a price of IDR 2,248.79.

Analyst from TD Securities, Bart Melek, explained that the rise in gold was still supported by market players' optimism regarding the Fed's interest rate cut even though US data was actually improving.

Inflation in US citizens' consumption expenditure (PCE) which is in line with market expectations makes investors confident that the US central bank (Federal Reserve/The Fed) will cut interest rates.

“The optimism that is currently growing is that the Fed will start to cut interest rates significantly even before inflation reaches the target of 2%. PCE inflation has already slowed down,” said Melek, to Reuters.

PCE inflation rose slightly to 2.5% (year-on-year/yoy) in February 2024, from 2.4% in January. Core PCE inflation also weakened to 2.8% (yoy) in February 2024, from 2.9% in January.

The increase in world gold prices also occurred amidst the still strong economy of the United States (US) and the strengthening of the US dollar. Strong US economic data usually puts pressure on gold because it can further prevent the Fed from raising interest rates,

This data includes the recovery of the US manufacturing sector in March. The Institute for Supply Management (ISM) reported that the manufacturing Purchasing Manager's Index (PMI) increased to 50.3 last March, becoming the highest and first above 50 since September 2022, from 47.8 last February.

This shows that the manufacturing sector, which was previously hit by rising interest rates, is starting to recover. PMI uses the number 50 as a starting point. If it is above 50, it means the business world is in an expansion phase. While below that means contractions.

The recovery of Uncle Sam's manufacturing sector has made this happen yield Treasuries rose again and made the US dollar index also rise. However, if yield Treasuries are rising, this should be a negative catalyst for gold, because gold itself does not offer anything yield.

Yield The benchmark 10-year tenor treasury rose almost 13 basis points to 4.319%.

The US dollar index flew in trading yesterday, Monday (1/4/2024) to position 105, 109. This position is the highest since November 13 2023 or almost the last four months.

The rise in gold amidst the strengthening of the US dollar is unusual. Gold usually immediately collapses as soon as the dollar strengthens. A stronger dollar will make gold more expensive to buy due to currency conversion so people tend to hold back on purchases

However, in fact, the price of gold has risen again and this means that many people are still buying gold. This is because of sentiment towards goldsafe havenalso supported by rising geopolitical tensions after Iranian and Syrian media reported that an Israeli strike hit a building next to the Iranian embassy in the Syrian capital on Monday.

CNBC INDONESIA RESEARCH

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