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03 December 2024

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Gold Weekly (25-29 November 2024): Avg. USD 2,635/oz (-0.8% WoW)

Recent Catalysts Driving the Price

  • In the last five trading days, average gold prices slightly decreased -0.8% WoW to USD 2,635/oz (from USD 2,656/oz) with the DXY index decreasing -0.4% WoW after FOMC minutes having signal continued gradual rate cuts.
  • Nevertheless, limited trading during the Thanksgiving holiday, along with Powell's rate cuts address and November Jobs report have provided some price support on gold. On the flip side, expectations of inflationary pressure from the incoming Trump US administration may add potential volatility to gold's price trajectory going forward.
  • Therefore, we maintain our FY24 gold price estimate at USD 2,400/oz (YTD: USD 2,368/oz), supported by heated geopolitical tensions benefiting gold as safe-haven asset. Stock-wise, we retain BRMS as our top pick (TP IDR 500; USD 26.4/ton EV/Reserve FY25F), driven by its robust dore bullion production, strong earnings outlook, and substantial untapped assets potential.

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