Jakarta, CNBC Indonesia – Gold prices in the main national market this week rose to Rp 18,000 per gram, in line with the strengthening of world gold prices which reached US$ 18.9 per troy ounce. There are two trigger factors behind it.
The selling price of the precious metal on the PT Aneka Tambang Tbk (Antam) website on Saturday (15/1/2022) increased by 1.28% or Rp. 12,000 to Rp. 953,000/gram from Friday’s trading which was at Rp. 941,000/gram.
However, on a weekly basis, Antam’s gold price as of Saturday increased by 1.93% because on Saturday last week the gold price at the metal SOE outlets was at the level of Rp. 935,000/gram. On Sunday, Antam’s gold price did not change.
If you look at the pattern, Antam’s gold price on a daily basis tends to follow the world gold price, with a one-day delay. Central world gold price on Friday actually strengthened, by 1.72% to US$ 1,858/troy ounce.
On a weekly basis, the price of the world’s precious metal is indeed strengthening by 2.79%, from last Friday’s position at US$ 1,807.5/troy ounce. The price increase occurred after the United States (US) announced January inflation which skyrocketed above predictions.
There are two major drivers of the strengthening of gold this week, namely geopolitical factors and increasing anxiety about the global economic outlook following a surge in inflation which is predicted to lead to more aggressive monetary banks in developed countries in tightening monetary.
US inflation still remains a problem, with a figure of 7.5% (annual) as of January, which is the highest figure since 1982 and even surpassed market expectations of 7.2%. When inflation rises, gold assets become more valuable as they function as a hedge (hedging) against the scourge of inflation.
On the other hand, the market is worried about the prospects for economic recovery, as the inflation spike is predicted to trigger policy hawkish in the monetary realm, which is useful for curbing inflation but at the same time can suppress economic growth.
Geopolitical factors also pushed up gold prices. Jake Sullivan, the White House’s national security adviser, said Russia would likely attack Ukraine within days, starting with air strikes.
CNBC INDONESIA RESEARCH TEAM
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