Gold Prices Continue To Drop Makes Women Anxious, Analysts: Don't Know When It Will Rise Again

Illustration. (Photo: Doc. Antam)

JAKARTA - The movement of the gold price of PT Aneka Tambang Tbk (Antam) is experiencing a decline phase. In fact, Antam's gold price reached its lowest level in the last 8 months.

Antam's gold price today, Tuesday, March 9, fell by IDR 9,000 from yesterday's position to IDR 915,000 per gram. However, the price has dropped to IDR 150,000 per gram from the highest position of IDR1,065,000 per gram on August 7, 2020.

This may leave many wondering, when will this situation continue? When can the price of gold return to the level of at least IDR 1 million?

"Until when is not certain. But the current pressure on gold prices is due to the increase in US government bond yields, especially long-term tenors. This increase in yield makes the US dollar more attractive and thus depresses gold prices", said Head of Research at Monex Investindo Futures, Ariston Tjendra, to VOI.

Ariston predicts that the global gold price in the spot market will continue to decline until the level of 1,600 dollars per troy ounce (toz), which is currently at the level of USD 1,676 per toz.

Each troy ounce is equal to 31.103 grams of gold, so the lowest level is around IDR 840,836 per gram assuming an exchange rate of IDR 14,400.

"The increase in yield was due to the impact of expectations of economic recovery and expectations of rising inflation in the US. The jumbo stimulus of USD 1.9 trillion also triggered an increase in yield because this stimulus could accelerate economic recovery in the US", explained Ariston.