Jakarta, CNBC Indonesia – The price of precious metal gold produced by PT Aneka Tambang Tbk on Tuesday (20/2/2024) at the LM Graha Dipta Pulo Gadung gold boutique rose by IDR 6,000 to IDR 1,124,000.

Likewise with prices buyback (the price used when reselling gold) was at IDR 1,020,000 per gram, an increase of IDR 3,000.

Antam’s gold strengthened as world gold prices on the spot market soared due to the escalating Middle East conflict.

In trading Monday (19/2/2024) the price of gold on the spot market closed up 0.22% at US$ 2017.63 per troy ounce.

Gold prices hit their highest level in almost a week on Monday as the US dollar weakened slightly and conflict in the Middle East supported gold’s safe-haven appeal.

The US dollar index weakened 0.03% at 104.26 in trading yesterday Monday (19/2/2024) after previously strengthening close to 105. The weakening of the US currency makes metals priced in dollars cheaper for buyers who hold the currency other.

Gold prices were supported by returning tense conditions in the Middle East. Israel is expected to continue full-scale military operations in Gaza over the next 6-8 weeks as it prepares for a ground invasion of the enclave’s southernmost city, Rafah, according to four officials familiar with the strategy.

A UK-registered cargo ship was reportedly attacked in the Bab al-Mandab Strait off the coast of Yemen on Sunday and the UK’s Maritime Trade Operations agency reported the crew abandoned the ship off the coast of Yemen after an explosion.

Apart from the war, gold players are also waiting for the release of the January 2024 Federal Open Market Committee or FOMC Minutes meeting, which will be released next Wednesday. It is hoped that this minute will provide further guidance regarding the timing of interest rate cuts, which will reduce the opportunity cost of holding gold bullion.

According to the CME Fed Watch Tool, the market is pricing in a 74% chance of a rate cut in 2024.

CNBC Indonesia Research

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