Jakarta, CNBC Indonesia – The price of gold bullion produced by PT Aneka Tambang (Antam) Tbk. fell slightly in trading Monday (26/10/2020).
However, there is a possibility that there will be major movements in the next 2 weeks, following the movement of world gold prices that will respond to economic growth data and the presidential election of the United States (US).
Launch data from logammulia.com, the official website of PT Antam, 1 gram of gold costs IDR 1,007,000 / stick, a decrease of IDR 1,000 or 0.1% compared to last Saturday’s price.
Meanwhile, the 100 gram unit which is usually used as a reference is valued at Rp. 94,912,000 / stick or Rp. 949,210 / gram, a decrease of 0.11%.
This morning, world gold prices continued their 2 consecutive days of decline. This is because the fiscal stimulus in the US is unlikely to be disbursed until the presidential election (pilpres) is completed on November 3.
In addition, the US gross domestic product (GDP) in the third quarter of 2020 is predicted to grow to 31.9% from the previous contraction (negative growth) of 31.4%. US GDP data will be released on Thursday, so there is likely to be a big move in gold after the release of the data and next week after a US presidential election winner brings Republican incumbent Donald Trump with his Democratic opponent Joseph ‘Joe’ Biden.
Andy Hecht partner at bubbatrading.com said whoever the winner is whether Donald Trump or Joe Biden, the price of gold is said to remain strong.
But if Biden wins the presidential election it will be more profitable for gold, because according to Hetch the value of the stimulus that will be dropped is greater.
The same thing was also expressed by Mike McGlone, a senior commodity strategist at Bloomberg Intelligence. He said gold is currently starting a strengthening trend 20 years ago, or what is called supercycle.
“I see gold today has similarities with 2001 when it started an upward trend. Gold is currently starting another bullish trend that started 20 years ago,” said McGlone as reported by Kitco.
McGlone said over the course of the Trump administration gold has shot 50%, and whoever reigns in the US next sees gold scoring another 50% increase.
Similar to Hetch, McGlone also assesses that Joe Biden will benefit more gold and the Democrat Party wins the general election this time.
When world gold prices shoot up again, Antam’s gold price will of course also rise.
CNBC INDONESIA RESEARCH TEAM
(pap / pap)
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