Last week on Friday (16/08/2024), gold prices closed with a significant increase, reaching a record high of USD 2,507 per troy ounce, marking a 2.08% gain in a single day.
Today, on Monday (19/08/2024), the start of the week saw gold prices slightly corrected by 0.09% to USD 2,504 per troy ounce, still remaining above its new psychological level of USD 2,500 per troy ounce.
The surge in gold prices at the close of last week’s market was driven by high market expectations for an interest rate cut by the Federal Reserve (The Fed), anticipated to take place this September.
Currently, market participants are awaiting a statement from Jerome Powell, the Chair of The Fed, regarding the current economic conditions at the annual Kansas City Fed Economic Symposium. Powell’s statement is highly anticipated as it will provide insight into the upcoming economic policies to be taken by The Fed.
Gold Prices Today in Indonesia
In contrast to the global gold prices, which surged to record highs, gold prices in Indonesia remained stagnant at IDR 4,180,000 per gram today, Monday (19/08/2024), unchanged since the market closed last Saturday (17/08/2024).
Previously, Antam’s gold purchase price in Indonesia had increased by IDR 14,000 from IDR 1,404,000 per gram on Friday (16/08/2024) to IDR 1,418,000 per gram on Saturday (17/08/2024).
Meanwhile, the buyback price offered by Antam also remained unchanged at IDR 1,270,000 per gram since last weekend, after increasing by IDR 20,000 from the previous IDR 1,250,000 per gram on Friday.
The gold purchase price at Treasury also saw an increase last weekend, rising from IDR 1,306,220 per gram on Friday (16/08/2024) to IDR 1,311,000 per gram on Saturday (17/08/2024), a rise of approximately IDR 5,000.
However, on Monday (19/08/2024), the gold purchase price at Treasury weakened by approximately IDR 11,000 to IDR 1,300,171 per gram as of 13:00 WIB. The drop in the purchase price was accompanied by a decrease in the gold selling price, or buyback price, offered by Treasury to IDR 1,253,717 per gram.
This decline could be influenced by profit-taking over the weekend, as the recent increase in gold prices prompted investors to sell some of their gold assets to capitalize on the gains.
Future Gold Price Predictions
Bart Melek, Chief Commodity Strategist at TD Securities, believes that gold prices could continue to rise and reach USD 2,700 per troy ounce in the near future. He also believes that investors remain highly optimistic about The Fed’s potential to implement more aggressive easing policies.
According to CME FedWatch, the likelihood of a 25 bps interest rate cut by The Fed in September is at 75.5%. This anticipated rate cut is not the only one expected, as the market hopes for three more cuts by the end of 2024, bringing rates down to 4.25%-4.5%.
Historically, lower central bank interest rates have been favorable for the gold market. Gold, which does not yield interest, becomes more attractive to investors, increasing demand and driving prices higher.
Summary of Last Week’s Gold Prices
Since the beginning of the year, gold prices have risen by 20% as gold, known for being a safe haven asset, has been favored by investors amidst the current political uncertainty and geopolitical tensions in the Middle East.
Last week, gold prices opened higher on Monday (12/08/2024) at USD 2,472.25 per troy ounce. This upward trend continued the next day, Tuesday (13/08/2024), reaching USD 2,474.24 per troy ounce, nearing its all-time high record.
On Thursday (15/08/2024), gold prices opened lower at USD 2,447.64 per troy ounce due to the impact of inflation data released that day. Although inflation is seen as aligning with The Fed’s 2% target, the U.S. economy is deemed strong, reducing expectations for a 50 bps rate cut to 25 bps.
Toward the end of the week, gold prices rose again. On Friday (16/08/2024), gold opened at USD 2,457.26 per troy ounce and closed with a new record high, gaining 2.08% to USD 2,507 per troy ounce.
In Indonesia, gold prices also saw fluctuations last week, although not significantly. Last Monday (12/08/2024), gold prices in Indonesia opened stable at IDR 1,401,000 per gram.
The following day, Tuesday (13/08/2024), gold prices increased by IDR 18,000 to IDR 1,419,000 per gram. However, this upward trend did not continue, as prices gradually weakened, reaching IDR 1,404,000 per gram on Friday (16/08/2024).
At the close of the week on Saturday (17/08/2024), gold prices rebounded, rising by IDR 14,000 to IDR 1,418,000 per gram. Therefore, the highest gold price last week was IDR 1,419,000 per gram, while the lowest was at IDR 1,401,000 per gram at the start of the week.
It’s Time to Invest in Gold, Starting from Just IDR 5,000
Daily fluctuations in gold prices shouldn’t worry you. Over time, gold prices will generally rise each year. Ideally, gold is used for medium to long-term investments.
So don’t hesitate to start investing in gold. Now, you can buy gold easily and affordably, starting from just IDR 5,000 with Treasury!
Treasury is the first licensed digital physical gold trader by BAPPEBTI. Its digital transactions are securely registered with KOMINFO and partnered with ICH to ensure user transaction security.
Treasury is also a member of ICDX, a clearinghouse and futures exchange supervised by BAPPEBTI. So you don’t need to worry about the legality and security of investing in gold with Treasury.
That’s not all. 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 more special promotions and prizes.
Even though you’re saving gold digitally, you can still convert your gold savings into physical gold, coins, or jewelry because Treasury also collaborates with PT Antam and UBS.
So what are you waiting for? Start your gold investment now for a better financial future!
