Jakarta, CNBC Indonesia – The price of precious metal gold produced by PT Aneka Tambang Tbk on Tuesday (2/1/2024) at the LM Graha Dipta Pulo Gadung gold boutique fell by IDR 1,000 to IDR 1,129,000.
Likewise with prices buyback (the price used when reselling gold) was at IDR 1,027,000 per gram, down IDR 1,000.
JP Morgan sees an “increasing rally” for gold in mid-2024, targeting a peak of US$2,300 per troy ounce on the back of expected interest rate cuts. UBS forecasts a record US$2,150 per troy ounce by the end of 2024 if the cuts occur.
The World Gold Council (WGC), in its 2024 projections, projects that a decline of around 40 to 50 basis points in longer-dated yields, after a 75-100 point rate cut, could result in a 4% rise in prices gold.
Continuing conflict in the Middle East, uncertainty due to elections in major countries, and gold purchases by central banks led by China will increase the attractiveness of gold as a safe-haven asset in 2024.
Gold prices are very sensitive to movements in US interest rates. An increase in US interest rates will make the US dollar and US Treasury yields strengthen. This condition is not beneficial for gold because the stronger dollar makes it difficult to buy gold so demand falls. Gold also does not offer yields so rising US Treasury yields make gold less attractive.
However, lower interest rates will make the US dollar and US Treasury yields weaken, thereby reducing the opportunity cost of holding gold. So gold becomes more interesting to collect.
CNBC INDONESIA RESEARCH
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