The world gold price is predicted to reach US$2,700 per troy ounce after the United States (US) Central Bank The Federal Reserve (The Fed) cut interest rates. The gold price shot up to 1% closer to its all-time record high from 20th September 2024. Based on Refinitiv data on 19th September, it was recorded at US$2,586.48 per troy ounce or up 1.08% compared to the previous position. Meanwhile, at the start of trading today, the gold price on the spot market was seen to have strengthened slightly by 0.03% to US$2,587.13 per troy ounce. According to CNBC Indonesia, Goldman Sachs said it sees potential for a tactical pullback in gold prices. It might happen if the Fed cuts by only 25 basis points, but reiterated its long-term gold trade recommendation and target of $2,700 an ounce by early 2025. The Fed surprised by cutting its benchmark interest rate by 50 basis points (bps) to 4.75-5.0% on Wednesday US time. The 50 bps cut was larger than market expectations of only 25 bps. This cut is the first since March 2020 or four years ago at the start of the Covid-19 pandemic. As is known, the Fed raised interest rates by 525 bps from March 2022 to July 2023. They then held interest rates at 5.25-5.50% in September 2023-August 2024 or more. The Fed believes that US inflation has moved towards its target range of 2%, so it cut interest rates. However, the main factor behind the 50 bps cut was the soaring US unemployment rate. “Given the progress in inflation and the balance of risks, the Committee decided to lower the federal funds rate by 50 bps,” the Fed wrote on its official website. FOMC members see the Fed’s benchmark interest rate at 4.4% by the end of this year, equivalent to 4.25%-4.5%. The Fed will hold another FOMC meeting on November 7 and December 18, 2024. https://www.cnbcindonesia.com/research/20240920054213-128-573176/ramalan-terbaru-harga-emas-dunia-usai-the-fed-pangkas-suku-bunga

Agri Ekspor Indonesia Inc. (AKOR) successfully carried out the first export of robusta coffee from Pagar Alam, South Sumatra to Malaysia. They exported a total of 19.8 tons of robusta coffee bean or IDR 1,566,734 product worth via the Pelindo Container Terminal on Tuesday (17/9). According to JPNN, this export mission was thanks to Palembang Customs assistance. They helped AKOR with supervising the export carried out by AKOR. “The success of the implementation of this first export activity cannot be separated from the synergy between agencies that also attended the ceremony of this activity,” said Head of the Palembang Customs Office Andri Waskito. Andri said that the Export Clinic is a program initiated by Customs to assist business actors in carrying out export activities. “With this initial export, it is hoped that it can become a sustainable momentum,” said Andri. He believes that this initial export will be an opener for foreign buyers to buy coffee in the South Sumatra region. This activity was also attended by the Head of the Industry and Trade Service of South Sumatra Province, representatives of the Animal, Fish and Plant Quarantine Center of South Sumatra. Chairman of the South Sumatra Coffee Council, and the Head of the Branch of PT Bank Syariah Indonesia KCP Palembang KM also attended.