With the country`s relatively high economic growth in the first half of 2012 reaching 6.3 percent, business players are convinced that gold still promises a bright prospect, even if its price fell on Monday compared with that last week.
Gold prices peaked at US$1,787 per troy ounce on Friday last week, indicating a strong resistance level at US$1,777, but dropped to US$1,759 per troy ounce on Monday morning, according to an analyst.
"The support level is at a range of US$1,751 per troy ounce today. If the prices drop below this level, they will be corrected to about US$1,730," said Ariston Tjandra, an analyst of Research and Analysis Affairs of PT Monex Investindo Futures, here on Monday.
He said to judge trade at the beginning of this week, one should focus on data from the Ifo (German institute for economic research) survey. "If the issued data are better than the prediction, that would reinforce gold prices," Ariston said.
Yet, this week gold still seems to be preferred as it could serve as safe haven for investors to keep the value of their assets.
"Many Indonesian choose to invest money they can spare in gold rather than in other assets including dollar," Ruly Nova, a market observer from Bank Himpunan Saudara, said meanwhile.
The increasing optimism in gold prompted state-owned mining company PT Aneka Tambang (Antam) to expand its gold market to various regions it has not yet reached so far. To expand the networks, Antam cooperate with state-owned pawnshop company PT Pegadaian.
With the cooperation, Antam will now be able to sell and distribute its gold ingots to those regions, according to its president director Alwinsyah Lubis
PT Antam will now be able to cover an unprecedented number of regions after its collaboration with state-owned pawnshop firm PT Pegadaian, which has an extensive network of outlets in different regions.
The memorandum of understanding on the collaboration between the two companies was signed in Bogor recently by Antam President Director Alwinsyah Lubis and PT Pegadaian President Director Suwhono.
The two companies have agreed to collaborate in the sale and purchase of gold ingots which are certified by the London Bullion Market Association (LBMA).
As part of the collaboration, PT Antam, through its metal purification and processing business units, will supply LAMB-certified gold bullion to Pegadaian based on daily prices.
Pegadaian will resell it through its outlets in different regions across the country.
Alwinsyah Lubis said that Antam would be able to expand its gold bullion distribution to previously untouched regions of the country through its collaboration with PT Pegadaian.
He said that Antam decided to collaborate with Pegadaian for distribution of its gold ingots after an increasing demand for the commodity was observed.
Pegadaian is one of Antam`s customers for gold bullion. It sold one ton of gold ingots to Pegadaian in 2011, a dramatic increase over corresponding figures of only 147 kilograms in 2010.
In the current second semester of 2012, Pegadaian has purchased up to 1.2 tons of gold ingots from Antam. For this year, PT Pegadaian has set itself a target of purchasing 2.5 tonnes of gold ingots from state mining firm PT Aneka Tambang (Antam) this year.
Nearly 1.2 tonnes of the gold ingots have been purchased and the remaining 1.3 tonnes will be bought this month.
"Last year, we bought 1.3 tonnes. And this year we will buy 2.5 tonnes," Suwhono said at the State Enterprises Ministry building on Friday.
He stated Pegadaian would partner with Antam in the sale and purchase of gold ingots, which are certified by the London Bullion Market Association (LBMA).
Pegadaian is one of Antam`s major gold ingot buyers. In mid-2010, Pegadaian bought gold (147 kg) from Antam for the first time. "The volume of gold we purchased reached almost 1 tonne in 2011," Suwhono noted.
This year, Pegadaian expects to sell 2.5 tonnes of gold, of which 1 tonne has already been sold for Rp550 billion.
The cooperation between Antam and Pegadaian will make it easier for gold hunters to invest in this commodity throughout the country.
Market observer from Bank Himpunan Saudara Ruly Nova said gold price could still rise higher as a result of The Fed`s quantitative easing, a monetary policy in a bid to shore up flagging US economy.
"The QE policy sends investors hunting for gold triggering a surge in gold price," he said.
Meanwhile, the Precious Metal Processing and Purification Unit of state-owned mining company PT Aneka Tambang (Antam) announced gold price at Rp584,200 per gram on Monday. The price of 5-gram gold bars is set at Rp2.771 million and 1-gram bars at Rp5.502 million each
The gold prices in the world market was 13.30 points or 0.75 percent lower at US$1,764.70 per ounce today.
Gold prices closed higher on Friday last week due to a weakening US dollar and in anticipation of Spain getting a full bailout package from the European Union.
The precious metal`s price strengthened in the wake of a new stimulus from the US Federal Reserve, which investors feared would weaken the US dollar.
The price of gold for December shipment increased by US$7.80, or 0.4 percent, touching US$1,778 per troy ounce in Comex, a division of the New York Mercantile Exchange.
In a week, gold prices rose by about 0.3 percent.
Business players therefore still purchase gold as a main commodity for their investments, although the price of gold continues to increase, investment researcher Ariston Tjandra said.
"Although gold continues to experience price increases, the public still invests in gold," Ariston, the head of Monex Investindo Futures Research affairs, said.
Business players consider that gold still has room to increase in price. This is because the public has begun to become aware that gold could also serve as a hedge for their investments.
"If gold undergoes pressures, it is predicted to happen only in the short term. Though it is facing pressures, the public is not concerned because gold prices always show an upward trend," Ariston said.
(A014/KR-BSR/H-YH)
Reporter: Andi Abdussalam
Editor: Jafar M Sidik
Copyright © ANTARA 2012
