Antam’s gold price could fall again, investors can buy it when the price is low

ILLUSTRATION. Aneka Tambang (Antam) gold price on Friday (30/10) was at the level of Rp 992,000 per gram.

Reporter: Intan Nirmala Sari | Editor: Wahyu T. Rahmawati

KONTAN.CO.ID – JAKARTA. The bullish trend of Aneka Tambang (Antam) ‘s gold bullion price is believed to still follow the global gold price in the long term. However, for the short term, Global Kapital Investama analyst Alwi Assegaf predicts that prices will continue to trend bearish.

Quoting the Precious Metals page, Aneka Tambang’s (Antam) gold price on Friday (10/30) was at the level of Rp. 992,000 per gram, down by Rp. 3,000 per gram from the previous day. As for the price buyback is at the level of IDR 884,000 per gram.

“This year, Antam’s gold price increase is not bad, so it is natural that there are many profit taking. “Taking action for this has caused prices to fall, offset by unsupportive sentiments of gold,” Alwi told Kontan.co.id, Friday (30/10).

Another cause of the decline in gold prices was the strengthening of the dollar index amid increasing uncertainty regarding stimulus from the United States (US). Alwi admitted that there were concerns that the stimulus would not be released until the election was over. This condition certainly adds to concerns and encourages investors to secure their assets to safe haven such as the US dollar and the Japanese yen.

Also Read: The price of gold goes down, investors should be wait and see

In addition, the Covid-19 cases in US and European friends also recorded an increase again. In fact, several countries in Europe such as Germany and France are re-implementing it lockdown. As a result, instead of saving gold, people prefer to secure portions cash they glanced at the US dollar.

Reflecting on these conditions, Alwi believes that lockdown will again hamper the process of global economic recovery. This is also reflected in the decline in stock markets in some of these countries in the last few days.

To cover losses margin call, investors sold their assets including gold and pushed global gold prices sluggish to below US $ 1,900 per troi ounce. “However, if the end of the year the US changes the president and releases the stimulus, it will provide a positive sentiment to the price of gold,” said Alwi.

Also Read: The fate of the precious metal depends on the results of the US presidential election next week

Even though it has the potential to rise again, Alwi predicts that the domestic gold bullion price will not be able to penetrate the highest level this year. This is because competition with high-risk assets such as stocks can discourage public interest in collecting gold.

“Especially if there is positive news related to vaccines, it will add to positive sentiment for assets risk on and also gold. Meanwhile, the prestige of the US dollar will be dim, “he added.

Until the end of the year, Alwi estimates that gold pressure will continue with this level support US $ 1,760 per troi ounce, with Antam’s gold price in the range of Rp 885,000 per gram. The momentum, according to Alwi, can be used by investors to make purchases at low prices or buy on weakness.

Meanwhile, for the long term, the price of Logam Mulia gold is believed to be still in a trend bullish, with a range support at IDR 886,000 per gram to IDR 842,000 per gram next year. Whereas for resistance potentially return at IDR 1,056,000 per gram.

Also Read: Down again, Antam’s gold price is at Rp 992,000 per gram today (30/10)