The strengthening of Antam’s gold price was limited. Wait for correction first and then buy

ILLUSTRATION. Thursday (8/10), Antam’s gold price has returned to the level of Rp. 1,004,000 per gram.

Reporter: Hikma Dirgantara | Editor: Wahyu T. Rahmawati

KONTAN.CO.ID – JAKARTA. After consistently staying above Rp. 1 million, the gold price of PT Aneka Tambang Tbk (ANTM) finally fell below Rp. 1 million. Antam’s gold price correction took place on Wednesday (7/10), however, today, Thursday (8/10), Antam’s gold price has returned to the level of Rp 1,004,000 per gram.

HFX International Futures analyst Ady Phangestu said, the decline in Antam’s gold price yesterday was due to falling interest in gold futures. This is reflected in the volume of gold futures which shrank by around 24,600. Ady said this indicated the view that there was no visible increase in the near future.

“However, in fact this yellow metal benefited from the weakening of the United States (US) dollar as market optimism about potential US stimulus and the FOMC minutes dovish. “The Speaker of the US House of Representatives Nancy Pelosi hinted at the readiness for airline support in talks with Finance Minister Steven Mnuchin after President Donald Trump canceled the previous stimulus negotiations,” explained Ady to Kontan.co.id, Thursday (8/10).

In equal measure, the Director of TRFX Garuda Berjangka Ibrahim said the stimulus for airlines had made gold prices rise again. Not to mention, the latest news states that the unemployment benefit stimulus that was previously rejected is likely to be distributed, although gradually.

Also Read: Antam’s gold price rises, potential buyer’s profit last year 18.25%

Ibrahim said that the certainty of this information was only on November 3, so it is likely that the strengthening of gold will be limited. “Fundamentally, gold is actually improving, but for gold Antam is also quite dependent on the movement of the rupiah exchange rate against the US dollar,” added Ibrahim.

In the future, Ady assessed that the movement of gold would still be limited by the rally risk-on on Wall Street. Thus, he sees that in the short term, the strengthening of international gold prices and Antam’s gold will tend to be limited. Therefore, he recommended that investors buy Antam’s gold when there is a correction in the market.

Also Read: The spot gold price moved up to US $ 1,891.15 per ounce troi

While Ibrahim advised investors to wait and see first. He said it was best not to buy Antam’s gold before the international gold price fell to US $ 1,830 per troi ounce. “If you reach that level, then you should buy Antam’s gold. Because when international gold reaches this level, it is likely that the price will creep up again, ”said Ibrahim.

Ibrahim estimates that Antam’s gold price at the end of the year will not be far from the current level, which is Rp 1,000,000 per gram. Meanwhile, Ady assessed that as long as the situation was not yet conducive, Antam’s gold price still had the potential to test the level of Rp 1,200,000 per gram at the end of the year.

Also Read: Details of this afternoon’s gold price for Antam’s precious metal at Pegadaian, Thursday, October 8, 2020