Gold Prices Fall Due to Decreased Global Demand

The global demand for gold has decreased, causing the price to drop. According to the Ministry of Trade in Indonesia, the export benchmark price (HPE) and reference price (HR) for gold commodities have fallen due to several factors.

Director General of Foreign Trade at the Ministry of Trade Tommy Andana said that the strengthening of global major currencies and increasing bond yields in the international market have contributed to the decline in gold prices. Additionally, investors are shifting their interest to other instruments with more measurable risks and profits, which has led to a decrease in demand for gold.

The gold HPE was set at 130,921.50 US dollars per kilogram, down 0.7 percent from the previous period. The gold HR also fell to 4,072.12 US dollars per troy ounce (t oz) from 4,100.67 US dollars per t oz.

The Ministry of Trade has set the HPE and HR based on data and technical input from the Ministry of Energy and Mineral Resources, which refers to the London Bullion Market Association (LBMA) publication. The determination of gold prices is carried out through cross-ministerial and inter-agency coordination.