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Company Reports

20 January 2025

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Gold Weekly (13 – 17 January 2025): Avg. USD 2,691/oz (+1.1% WoW)

Recent Catalysts Driving the Price

  • Over the past 3 consecutive weeks gold prices had trended upward, averaging in the last five trading days USD 2,691/oz (from USD 2,661/oz), up +1.1% WoW, while DXY Index stayed flattish at 108.9 (+0.4% WoW), amid weaker USD and lower Treasury yields. In-line CPI data at 2.9% (Est.: 2.9%, Prior: 2.7%) reinforced expectations for more rate cuts in 2025, boosting market optimism.
  • Slower-than-expected US December PPI inflation (3.3% YoY, est: 3.4% YoY) exerted additional pressure on DXY index, making gold more affordable for international buyers. However, easing geopolitical tensions in some regions could diminish gold status as a safe haven asset, capping further price increases.
  • We maintain our FY25 price forecast at USD 2,800/oz (YTD: USD 2,671/oz), propelled by potential increase in gold purchases for reserves, though slower Fed rate cuts may temper price gains. Stock-wise, we retain BRMS as our top pick (TP IDR 500; USD 26.4/ton EV/Reserve FY25F) driven by solid earnings outlook and substantial untapped asset potential.

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