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JAKARTA. Gold producer PT Aneka Tambang (Antam) says on its website that local gold bar prices have topped Rp 530,000 (US$ 62.2) per gram, up almost 12 percent from Rp 473,000 a month ago.
A 25-gram gold bar was sold at Rp 491,480 per gram, up from Rp 434,480 on July 11. Last year, gold bar prices increased by around 14 percent from Rp 350,000 to Rp 400,000.
Meanwhile, global gold prices raced past $1,700 an ounce or $59.96 a gram (1 ounce is approximately equal to 28.3 grams) for the first time on Monday, the Associated Press reported. Anxious investors sought safety in the metal as stocks tumbled around the world after the US lost its AAA credit rating.
Gold's allure stems in part from fears that the world's major economies are dangerously indebted. Its value, unlike that of a currency, does not hinge on whether countries can make their bond payments.
Standard & Poor's on Friday cut the long-term credit rating for the US by one notch to AA+, deepening investor fears about a weakening US economy. The move may have been expected, but economists say its impact is still unclear, and the downgrade could hurt the economy. For example, rates on mortgages could increase, further damaging the US housing market.
Gold soared to $61.40, up 3.7 percent, to settle at $1,713.20 an ounce on Monday. It reached a record high of $1,723.40 per ounce during the day.
Still, adjusted for inflation, an ounce of gold remains below its 1980 peak of $850 an ounce, which translates to around $2,400 an ounce in today's terms. (The Jakarta Post)
