Yesterday, Wednesday (08/14/2024), gold prices opened flat with a slight correction. However, by the end of trading, global gold prices had dropped significantly by 0.71%, reaching USD 2,447.64 per troy ounce.
Today, Thursday (08/15/2024), global gold prices have slightly corrected to USD 2,447.45 per troy ounce. This consecutive decline in gold prices over two days is influenced by statements from Raphael Bostic, President of the Atlanta Fed, who indicated a desire to see more data to support a rate cut.
Despite U.S. consumer inflation data reportedly slowing and high interest rates nearing their peak, gold prices have not benefited from these conditions. Typically, when interest rates decline, investors shift to gold as it offers no yield and is considered a more favorable investment.
U.S. consumer prices have risen with inflation slowing to under 3% year-on-year, the lowest rate in 3.5 years since March 2021, which has boosted market optimism regarding a potential rate cut.
Additionally, other supporting data includes a 0.4% increase in housing costs, contributing to a 90% rise in the CPI, and a 0.2% increase in food prices. According to Scott Anderson, Chief Economist at BMO Capital Markets, these reports show inflation approaching the Fed’s target.
Today’s Gold Prices in Indonesia
In line with the decline in global gold prices at yesterday’s market close, gold prices in Indonesia have also fallen. As of today, Thursday (08/15/2024), Antam’s gold purchase price has decreased by IDR 5,000 from IDR 1,419,000 per gram to IDR 1,414,000 per gram.
The buyback price offered by Antam has also dropped by IDR 8,000 to IDR 1,260,000 per gram from IDR 1,268,000 per gram recorded on Wednesday (08/14/2024).
Similarly, gold prices at Treasury have also decreased by approximately IDR 15,000 from IDR 1,297,999 per gram to IDR 1,282,864 per gram as of 12:00 PM WIB.
The buyback price offered by Treasury today is IDR 1,241,891 per gram, resulting in a spread of approximately IDR 41,000. This spread is narrower than that of Antam, as Treasury offers gold investment with minimal risk while still providing optimal returns.
Future Gold Price Predictions
According to the U.S. Bureau of Labor Statistics, the Producer Price Index (PPI) increased by 0.1% for July, following a 0.2% rise in June.
Although the month-to-month inflation data shows a 0.2% increase compared to the previous month and is the highest in the last three months, the gold market remains confident that the Fed will still implement a rate cut in September.
Scott Anderson, Chief Economist at BMO Capital Markets, believes that U.S. inflation data can no longer prevent the Fed from cutting rates in September. However, hopes for a larger rate cut remain challenging.
Based on CME FedWatch, the likelihood of the Fed cutting rates by 25 basis points to 5%-5.25% in September has increased to 64%, while the chance of a 50 basis point cut has decreased to 36%.
Time to Invest in Gold, Starting from Just IDR 5,000
Daily fluctuations in gold prices shouldn’t worry you. Over the long term, gold prices are expected to rise. Ideally, gold should be used for medium to long-term investment.
So, don’t hesitate to start investing in gold. Now, you can buy gold easily and affordably, starting from IDR 5,000 at Treasury!
Treasury is the first licensed digital physical gold trader with BAPPEBTI. Digital transactions are secure as they are registered with KOMINFO and partnered with ICH to ensure transaction safety.
Treasury is also a member of ICDX, a clearing institution and futures exchange regulated by BAPPEBTI. Thus, you don’t need to worry about the legality and safety of investing in gold with Treasury.
Moreover, Treasury offers various attractive features such as Jamimas (gold loans), Panen Emas with interest rates up to 9% p.a., FREE gold storage and transfers, and many other promotions and special prizes.
Even with digital gold savings, you can still convert your gold savings into physical gold, coins, or jewelry, as Treasury collaborates with PT. Antam and UBS.
So, what are you waiting for? Start your gold investment now for better financial health today and in the future!
