Jakarta –
Gold price the world closed last weekend in the red and left the level of US $ 1,900 per ounce. This also makes Antam’s domestic gold price still on a downward trend.
Launching Kitco, Sunday (8/5/2022), the June Comex gold futures price at the close of last Friday was at the level of US$ 1,883. It was down 1.6% on a weekly basis and down 2.19% on a monthly basis.
One of the causes of the volatility of this shiny commodity is none other than the recent policy changes by the US central bank, the Federal Reserve. The Fed had one of the most anticipated announcements across markets last week, namely the benchmark interest rate by raising it by half a percentage point on Wednesday (4/5)
“Wall Street now believes the Fed is on track to deliver a half-point rate hike over the next few meetings, and then Jackson Hole, they have to decide whether to continue or change course,” said OANDA senior analyst Edward Moya. Kitco News.
Moya continued that many investors hoped that the Fed could restrain themselves in anticipating the rate of inflation in the US. However, the Fed gave a signal that they believe inflation is inevitable, so there is concern that the Fed will take a decision that accelerates the fall of the US economy into a recession.
But the Fed said it was not actively considering the 75 basis point hike and decided on slightly more gradual tightening. The bond market reacted, investors continued their sell-off and pushed up the US dollar index, which Moya said was bad news for gold.
This market reaction could also signal that the Fed is losing its credibility, especially after downplaying inflation as a switch last year.
There was a massive liquidation of risk assets in trading after the Fed’s announcement. Many investors are turning to cash. It’s important to remember though that gold is holding up pretty well considering how high the US dollar is rising.
The decline in world gold prices itself is reflected in the price of Antam’s 24-carat gold output which also continues to decline. In trading positions before the Lebaran holiday or on April 28, 2022, Antam’s gold price fell by IDR 6,000/gram and was at the level of IDR 975,000 per gram.
If you look at the graph, Antam’s gold price has decreased since April 18, 2022, which at that time was at the level of Rp. 1,010,000 per gram. The next day it dropped to a level of Rp. 1.007,000 per gram.
The decline continued to the position of Rp. 995,000 per gram. Then it continued to decline to a level of Rp. 975,000 per gram.
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(the/zlf)
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