Antam’s Gold Price Soars to IDR 12,000 per Gram Today 6 November 2021

Gold prices rose more than 1 percent in Friday trade to a nearly two-month high. The increase in gold prices was due to the dovish tone of the United States (US) central bank, the Federal Reserve (The Fed) on interest rates this week, lifting demand for the safe-haven metal.

Quoted from CNBC, Saturday (11/6/2021), the price of gold in the spot market rose 1.2 percent to USD 1,813.36 per ounce at 1:45 pm. ET (17:45 GMT), recovered from a 0.3 percent drop triggered by more-than-expected US employment data in October.

While the price of US gold futures for December delivery closed up 1.3 percent to USD 1,816.80 per ounce.

“Despite the strong labor market report, that won’t change what Federal Reserve Chair Jerome Powell has shown this week,” said Edward Moya, senior market analyst at OANDA.

The Federal Reserve on Wednesday stuck to its view that inflation will prove transient and will likely not require a rapid rate hike. After that, the Bank of England surprised the market by keeping interest rates on hold.

Near-zero interest rates to spur economic growth during the COVID-19 pandemic have pushed gold prices to new highs over the past two years, as easy monetary policy cuts the opportunity cost of holding non-yielding assets.

This week, the central bank’s announcement helped gold reverse from early losses to be on track for its best weekly gain since late August of around 1.8 percent.

“Gold bulls seem to draw strength from the Fed’s hasty stance in raising interest rates,” said FXTM analyst Lukman Otunuga.

He added that weak treasury yields were also underpinning the rise in gold prices.

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