Jakarta, CNBC Indonesia – The selling price of gold at PT Pegadaian (Persero) has been updated. Not bad, the price of 1 gram of gold is still over IDR 1 million.
The following is the price of gold at Pegadaian on September 13, 2020:
The price of gold at Pegadaian (or PT Aneka Tambang Tbk’s Precious Metals) cannot be separated from world gold price movements in the spot market. In this week, the price of the metal started to increase by 0.37% point-to-point.
The price of gold cannot go up too sharply because it happens that the United States (US) dollar is strengthening. Both of them have an inverse relationship.
Gold is a commodity priced in US dollars. So when the US dollar strengthens, gold feels expensive for investors who hold other currencies. Demand for gold slows down which affects the price.
In the last week, the Dollar Index (which measures position greenback in front of six major world currencies) rose 0.57%. US Dollar experienced technical rebound after three months, 4.18% subsidence.
But going forward, it seems that the prospects for the currency of Uncle Sam’s country are not bright. This is because the monetary policy of The Federal Reserve / The Fed is likely to remain loose until the US economy recovers from the impact of the corona virus pandemic (Coronavirus Disease-2019/ Covid-19). According to Jerome ‘Jay’ Powell, Chairman of the Fed, it may take years.
“The medium-long term projections for gold are still bullish, although currently there is a consolidation. Ultra-loose monetary policy and yields (yield) low bonds will be a cushion to decline in gold prices, “said Margaret Yang, Strategist at Daily FX, as quoted by Reuters.
CNBC INDONESIA RESEARCH TEAM
(aji / aji)