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17 February 2025

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Gold Weekly (10 – 14 February 2025): Avg. USD 2,904/oz (+2.0% WoW)

Recent Catalysts Driving the Price

  • In the last five trading days, average gold prices surged +2.0% WoW to USD 2,904/oz (from USD 2,849/oz), while the DXY Index dropped to USD 107.6         (-0.37% WoW). Gold reached its all-time high of USD 2,928/oz, driven by strong investor confidence despite economic uncertainties.
  • Demand for gold as safe-haven asset returned after a brief  slump, reinforcing its role as hedge against rising inflation and instability. Contrary to expectations, gold rallied following the release of hotter-than-expected core CPI data (+3.3% YoY), demonstrating resilience despite concerns over Fed rate policies. Additionally, uncertainty surrounding potential Fed tightening and US tariff threats drove further buying, highlighting gold’s strength in volatile conditions.
  • Given macro uncertainties and positive US economic outlook, there is upside potential to our FY25 gold price forecast of USD 2,800/oz (YTD: USD 2,763/oz), backed by higher gold purchases for central bank reserves. Stock-wise, BRMS remains our top pick (TP IDR 500; USD 26.4/ton EV/Reserve FY25F), thanks to solid earnings outlook and substantial untapped assets potential.

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