Jakarta, CNBC Indonesia – The price of gold bullion produced by PT Aneka Tambang (Antam) Tbk. or what is known as Antam’s gold fell in trading today, Monday (12/10/2020), after strengthening sharply last week. Antam’s gold price was benefiting from the increase in world gold prices, but was slightly burdened by the strengthening of the rupiah.
Launching data from logammulia.com, the official website of PT Antam, the price of 1 gram of gold today is priced at IDR 1,017,000 / stick or down 0.2%. While last Saturday it raced 1.19%.
Antam’s 100 gram gold, which is usually used as a reference today, is priced at IDR 95,912,000 / stick or IDR 959,120 / gram, an increase of 0.21%.
The world gold price in trading Friday (9/10/2020) shot up 1,929.43 / troy ounce, which also raised the price of Atam gold on Saturday.
The United States dollar (US), which was sluggish due to expectations of fiscal stimulus in the US, prompted gold to shoot up.
The expectation for a stimulus will improve sentiment of market players, the US dollar is an asset safe haven to be unattractive. In addition, if the fiscal stimulus is liquid, the amount of money in circulation will increase in the economy and the value of the US dollar will weaken.
Gold though is also an asset safe haven remains strong due to the weakening of the US dollar. In addition, fiscal stimulus together with monetary stimulus were the main “fuel” for gold to strengthen this year to hit an all-time high of US $ 2,072.49 / troy ounce on August 7.
“If there is a deal, the stimulus will have the potential to revive inflation expectations towards the US central bank’s (The Fed) target, along with the Fed’s low interest rates being a very good catalyst for gold” said Bart Melek, chief commodities strategist at TD Securities. , launch Reuters.
On the other hand, the sluggish US dollar made the rupiah exchange rate stronger by more than 1% over the past week. This strengthening dampens the effect of strengthening world gold.
The world gold price is priced in US dollars, when the Garuda currency strengthens, the world gold price will certainly be cheaper if converted to rupiah.
The strengthening of the rupiah has the potential to continue this week, because the Governor of DKI Jakatara has relaxed Large-Scale Social Restrictions (PSBB) starting today.
The DKI Jakarta Provincial Government has decided to reduce the emergency brake policy gradually and enter the Transitional Large-Scale Social Restriction (PSBB) with new provisions for the next two weeks, from 12-25 October 2020.
In this PSBB Transition, the mall is allowed to open until 21:00, with a maximum visitor capacity of 50% of normal days before the PSBB or before the corona virus pandemic strikes. Restaurants are also allowed to serve meals on the spot or again dine in.
In addition, cinemas have also reopened with a maximum audience capacity of 25%.
The easing of the PSBB could be a positive sentiment for the rupiah. If it continues to strengthen, Antam’s gold price will certainly dampen the increase in Antam’s gold price, or it could even go down again if world gold is also corrected after sharp strengthening last Friday.
CNBC INDONESIA RESEARCH TEAM
(pap / pap)
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