Jakarta, CNBC Indonesia – The price of gold bars produced by PT Antam Tbk. or what is known as Antam’s golden strike in Saturday trading (7/1/2022). Its current position has reached its highest level in 10 months.
According to data from the official website of PT Antam, logammulia.comgold with a size of 1 gram is priced at IDR 1,032,000/bar, up 1% from last Friday’s price.
PT Antam sells gold ranging in size from 0.5 grams to 1,000 grams. The sale price does not include tax of 0.9% for purchases without using a Tax Identification Number (NPWP) and 0.45% with a NPWP.
Antam’s gold price surge followed global gold as it jumped 1.77% to US$1,865/troy ounce, its highest level since June 2022.
The increase was triggered by expectations that the US central bank (the Fed) would reduce its aggressiveness in raising interest rates. That’s because the service sector in the US contracted for the first time in nearly three years.
This could be an indication that inflation in the US is already on a downward trend.
As known throughout 2022, the Fed raised interest rates by 425 basis points to 4.25% – 4.5%, the highest in 15 years. The increase was also the most aggressive since the 1980s.
In 2023, the Fed has the opportunity to raise interest rates two more times, 50bps in February and 25bps upfront to 5% – 5.25%. That would be the maximum level of interest rates in the US, implied by Powered point plot which was released last December.
Interest rates are the “main enemy” of gold, the higher it is, the more depressed the precious metal will be. This sent the world gold price down to its lowest level in a year and a half, in the range of USD 1,660/troy ounce in September 2022. Stuck at this level for a long time, world gold started November and was up US$200 or about 12% from its current position.
As a result, Antam’s gold price also increased.
CNBC INDONESIA RESEARCH TEAM
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