Gold prices are experiencing a slight pullback today following a recent rally, driven by investors adjusting their positions after the latest inflation data release.
Gold Prices Dip Amid Inflation Data
Spot gold prices slid 0.4% during Monday’s trading session (Feb 16), currently hovering around US$5,020 per troy ounce, according to The Business Times.
A strengthening US Dollar Index is contributing to the decline, as a stronger dollar makes gold more expensive for those using other currencies.
Inflation and Rate Cut Expectations
Despite the price dip, US consumer inflation data showed a modest increase, with the CPI rising by just 0.2%. This data keeps the possibility of interest rate cuts alive this year, with the market currently pricing in a total of 75 basis points in cuts. LSEG data suggests the first cut could occur in July.
Impact on Domestic Prices
The global trend has immediately impacted domestic prices in Indonesia. Antam’s gold price dropped to IDR 2,940,000 per gram, while the buyback price on the Logam Mulia site fell to IDR 2,728,000 per gram.
Geopolitical Factors and Market Outlook
Geopolitical tensions in the Middle East are also playing a role, potentially preventing a more significant price decline. Reuters reports that the US military is preparing for potential long-term operations related to the conflict with Iran.
Analysts, including Ponmudi R from Enrich Money, spot this correction as a shift from “panic mode to strategic accumulation.” The US$5,000 level is considered a strong psychological floor, with a constructive directional bias as long as prices remain above US$4,900.
Antam Logam Mulia Gold Prices Today
| Weight | Base Price | Price (+Tax 0.25%) |
|---|---|---|
| 0.5 gr | IDR 1,520,000 | IDR 1,523,800 |
| 1 gr | IDR 2,940,000 | IDR 2,947,350 |
| 2 gr | IDR 5,820,000 | IDR 5,834,550 |
| 3 gr | IDR 8,705,000 | IDR 8,726,763 |
| 5 gr | IDR 14,475,000 | IDR 14,511,188 |
| 10 gr | IDR 28,895,000 | IDR 28,967,238 |
| 25 gr | IDR 72,112,000 | IDR 72,292,280 |
| 50 gr | IDR 144,145,000 | IDR 144,505,363 |
| 100 gr | IDR 288,212,000 | IDR 288,932,530 |
Frequently Asked Questions
What caused the recent dip in gold prices?
The pullback is largely driven by global investors taking profits following the latest inflation data release and a strengthening US Dollar Index.
How has the US inflation data impacted gold prices?
Soft US inflation data keeps the hope for interest rate cuts alive this year, but a stronger US Dollar Index has pushed global gold down to the US$5,020 level.
What is the current price of Antam gold per gram?
Antam’s gold price dropped by IDR 14,000 to IDR 2,940,000 per gram today.
Considering these market dynamics, how do you anticipate your investment strategy evolving in response to these fluctuations?
