DIGIVESTASI - Gold Prices Rise Amid Market Anticipation of Federal Reserve's Interest Rate Outlook and Trump's Tariff Policies

Gold prices experienced an increase on Monday (12/30/2024), as the market anticipated the Federal Reserve's stance on interest rates and President-elect Donald Trump's tariff policies, which could influence gold trends in the upcoming year.

According to a Reuters report, spot gold rose 0.2 percent to $2,626.30 per ounce at 03:18 GMT. Meanwhile, U.S. gold futures climbed 0.3 percent to $2,638.70.

A stable dollar index also supported gold's steady movement, said Kelvin Wong, senior market analyst at OANDA for the Asia-Pacific region. "Geopolitical tensions have been a key driver for gold's upward trend this year and are likely to remain an essential factor in 2025, especially with Trump's return to the White House," he explained. The market is currently bracing for major policy shifts, including potential new tariffs, deregulation, and tax changes under Trump's administration.

As of late December 2024, gold prices have risen more than 27 percent this year, hitting an all-time high of $2,790.15 per ounce on October 31. This surge was driven by significant interest rate cuts by the Federal Reserve, including a major reduction in September, as well as rising geopolitical uncertainties.

As a hedge against inflation and geopolitical turmoil, gold remains attractive amid a 100 basis point interest rate cut by the Federal Reserve this year. However, the U.S. central bank has signaled more modest rate reductions in 2025.

Wong predicts that gold prices are likely to remain flat in the short term until early next year. Trading activity is expected to stay subdued as the year ends.

Prices of Other Precious Metals
In addition to gold, spot silver rose 0.1 percent to $29.40 per ounce, platinum increased 0.2 percent to $921.45, and palladium gained 0.1 percent to $912.84.

Gold Prices in Indonesia
Gold prices in the domestic market also saw notable movements. Here are the detailed gold prices as reported by Kompas.com on Monday (12/30/2024):

• Antam Gold at Pegadaian:

  • 0.5 gram: Rp 834,000
  • 1 gram: Rp 1,565,000
  • 2 grams: Rp 3,067,000
  • 3 grams: Rp 4,575,000
  • 5 grams: Rp 7,591,000
  • 10 grams: Rp 15,124,000
  • 25 grams: Rp 37,682,000
  • 50 grams: Rp 75,282,000
  • 100 grams: Rp 150,483,000
  • 250 grams: Rp 375,935,000
  • 500 grams: Rp 751,653,000
  • 1,000 grams: Rp 1,503,265,000

• Gold from Galeri-24:

  • 0.5 gram: Rp 818,000
  • 1 gram: Rp 1,519,000
  • 2 grams: Rp 2,978,000
  • 5 grams: Rp 7,365,000
  • 10 grams: Rp 14,628,000
  • 25 grams: Rp 36,533,000
  • 50 grams: Rp 73,005,000
  • 100 grams: Rp 145,995,000
  • 250 grams: Rp 364,700,000
  • 500 grams: Rp 729,398,000
  • 1,000 grams: Rp 1,458,794,000

• UBS Gold:

  • 0.5 gram: Rp 818,000
  • 1 gram: Rp 1,514,000
  • 2 grams: Rp 3,004,000
  • 5 grams: Rp 7,423,000
  • 10 grams: Rp 14,767,000
  • 25 grams: Rp 36,842,000
  • 50 grams: Rp 73,532,000
  • 100 grams: Rp 147,004,000
  • 250 grams: Rp 367,401,000
  • 500 grams: Rp 733,937,000