Jakarta, CNBC Indonesia –The price of gold bullion sold at PT Pegadaian moved variously in today's trading, Wednesday (13/3/2024). The price of Antam type gold strengthened, while the UBS type weakened.

Pegadaian itself sells various types of gold, namely Antam gold, Antam Retro and UBS. The sizes are sold in various sizes, ranging from 0.5 grams to 1,000 grams.

In today's trading, the price of 1 gram of Antam gold was recorded at 1,241,000, an increase of IDR 2,000 per gram. The average price of Antam gold in various sizes rose 0.17% compared to yesterday's trading. This gold is available in sizes/units of 0.5 grams to 1,000 grams.

UBS issued by PT Untung Bersama Sejahtera costs IDR 1,210,000 per gram, a decrease of IDR 11,000. The average gold price in various units weakened by 0.08%. UBS gold itself is available in complete sizes ranging from 0.5 grams to 500 grams.

Pegadaian's gold price was able to survive when world gold fell 1.12% in yesterday's trading (12/3/2024).

Gold prices were still under pressure in Tuesday's trading, falling more than 1%, after the United States (US) inflation report dimmed the prospect of the Federal Reserve (The Fed) immediately lowering interest rates.

US consumer prices rose strongly in the February period, indicating some stickiness in inflation. Data shows the Consumer Price Index (CPI) rose 0.4% monthly in February. Annually, the figure increased 3.2%, above the forecast of 3.1%.

According to the CME FedWatch tool, markets are still pricing in around a 70% chance of a US rate cut in June 2024. The US central bank's next policy meeting will be held on March 20

Gold prices are very sensitive to movements in US interest rates. An increase in US interest rates will make the US dollar and US Treasury yields strengthen. This condition is not beneficial for gold because the stronger dollar makes it difficult to buy gold so demand falls. Gold also does not offer yields so rising US Treasury yields make gold less attractive.

However, lower interest rates will make the US dollar and US Treasury yields weaken, thereby reducing the opportunity cost of holding gold. So gold becomes more interesting to collect.

CNBC INDONESIA RESEARCH

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