Gold Prices Plummet, Experts Urge Government to Maintain Rupiah Exchange Rate and Seek New Export Markets
April 5, 2025
Romauli Nainggolan, a lecturer at the Faculty of Business and Management at Ciputra University (UC) Surabaya, stated that the plummeting gold price was triggered by several factors, such as the law of supply and demand and the United States’ trade war policies.
“Gold is an easily liquidated investment, both for individuals and investors. When demand for gold in the market increases, suppliers tend to raise prices. However, currently, gold supplies are abundant in the market, so prices have fallen,” he said when contacted by suarasurabaya.net on Saturday (April 5, 2025).
Roma said that President Donald Trump’s policy of imposing a 32 per cent import tariff has impacted Indonesia’s ability to export products to that country. Therefore, investors are starting to anticipate investment by selling their gold.
“They (investors) must continue exporting, but their exports to the US are being held back. They have to look elsewhere. So, to negotiate with other countries, they will still be operational; they need their investment funds to be disbursed. So, they sell their gold,” he explained.
Gold prices, Roma continued, will continue to fall as long as supply exceeds demand in the market.
“Gold prices will stop falling if supply equals demand,” he said.
For ordinary people who have recently purchased gold, this situation is very detrimental, as its value will decline. Therefore, he advised against selling gold immediately.
“For people who already own gold, it’s best not to sell it while it’s currently falling, as the loss will be doubled. They will be deducted from the operational costs of gold production. Secondly, they will be deducted from the world gold price,” he added.
Meanwhile, for policymakers, he emphasised that Bank Indonesia (BI) must maintain the current rupiah exchange rate. The government must also find alternative solutions for Indonesian exports to other countries, such as Europe.
“Our government must find export solutions when a trade war like this occurs. Look to countries with potential besides the United States, perhaps European countries, because we export quite a lot to the United States,” he emphasised.
As is known, on Saturday (April 5, 2025), the selling price of Antam gold fell Rp17,000, from Rp1,882,000 to Rp1,865,000 per gram.
UBS gold fell Rp28,000, from Rp1,825,000 to Rp1,797,000 per gram. Meanwhile, Galeri24 gold also fell Rp13,000, from Rp1,804,000 to Rp1,794,000 per gram. (ris/saf/iss)