Gold Price Indonesia: Factors, Trends, and Outlook

Gold represents grandeur, elegance, sophistication, and extravagance. Since ancient times, gold has been valued more than most other metals. Crowns, swords, and many other ancient and recent regalia had been embellished by the element. Speaking about value, we will discuss about gold price Indonesia and its determining factors, past trends, and future outlook.

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Why Do We Fancy Gold So Much?

Sumber : Envato

Humanity started to develop its fascination for the shiny, soft metal gold perhaps as soon as we mastered fire. Metalworks in itself is an indicator that a civilization has entered its respective Bronze Age, since ore smelting and metal processing skill requires an adequate knowledge of controlling fire. Millennia later, we still love gold as much as we do, if not more.

As we are all aware, gold is a bright, yellowish-dense metal that is quite soft and malleable compared to other metals. It’s rare, and it is among the most long-lasting elements in the world. These characteristics are what apparently fascinate us.

Ironically, this fascination came from the fact that gold is boring—at least in chemical standards. They are rare but still obtainable. They are generally non-reactive, so not much will happen when exposed to other elements. Since they are non-reactive, gold will stay untarnished no matter how many years have passed.

However, something holds value because we are the ones who put a value on it. In the case of gold, despite the irony of it, we hold a high value on them simply because we like the shiny, soft, yellowish metal that catches our eyes.

Influencing Factors

There are several factors that influence the price of gold not only in Indonesia but also in other countries. Generally, there are four determining factors: supply, demand, interest rates, and investor behavior.

Supply and Demand

Anyone who took basic economy class knows that supply and demand directly affect the price of a product. If demand is higher than supply, the price will rise; if supply is higher than demand, the price will drop. In order to stabilize the price, we must find the perfect balance between supply and demand. The same economic principle applies to gold as well.

Interest Rates

Interest rates possess a great influence over gold pricing, especially in the long term. This is because the value of many currencies is backed by gold. Therefore, when a country’s central bank adjusts its interest rate to handle the occurring economic situation, the price of gold backing their currency will be affected.

Investor Behavior

The thing about gold is that one of the values we put on the bright yellow metal is that it can hold its own value amidst uncertain economic situations. This makes gold considered a safe haven asset for investors. Since their economic value stays relatively unchanged, investors tend to turn their assets to gold when a crisis hits.

Price Trends

Sumber : Envato

Gold price Indonesia, like all valuable assets that are actively traded, has had ups and downs throughout history. As of June 2023, a single gram of gold is valued at IDR 919,097. The price had actually decreased since last month, when it reached IDR 965,832. In the current quarter (Q2 2023), average gold prices alternate between IDR 919,097 and IDR 971,649.

When compared to the first quarter of 2023, gold price Indonesia reached its peak at IDR 982,838 on March 18. It was elevated to that level after starting with IDR 911,724 at the beginning of the year.

Outlook and Investment Opportunities

Based on this data, the price of the precious metal is currently descending. The trend will unlikely be accelerated or reversed in a couple of months unless major forces are at play. You should hold until the price drop hits its lowest and starts to climb before considering spending your hard-earned money to invest in gold. This way, you can maximize your profit from the investment.

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Set your eyes and ears towards Bank Indonesia since their BI rate can alter the gold price Indonesia. Nevertheless, gold investment in Indonesia today is a waiting game. With the Presidential elections next year, you may have to wait and see what will happen during the follow-up to the actual elections.