US Policy Affects Gold Prices, Observers Say There Are Still Short-Term Corrections

Gold illustration (Between)

JAKARTA - President Commissioner of HFX International Futures Sutopo Widodo stated that Antam's precious metal prices were strongly influenced by global gold prices and local factors such as currency exchange rates, import/export policies, and domestic demand.

Sutopo said that currently, world gold prices have decreased from their record high at the level of 3,357 US dollars per ounce to around 3,310 US dollars per ounce on Thursday, April 17, as investors take profit amid uncertainty in US trade policy.

According to Sutopo, the prospect of gold prices in the future is still promising in the long term due to factors such as geopolitical tensions, inflationary pressures, and the accumulation of gold by global central banks.

"Some estimates show gold can reach USD 3,500 USD 4.000 per ounce by the end of 2025. For Antam it is in the range of IDR 2.1 million-IDR 2.2 million per gram. However, short-term corrections may occur as markets react to global developments," he explained to VOI, April 20.

However, Sutopo said short-term price corrections were still possible, as market reactions to global dynamics, including changes to tariff policies by the Trump administration, which consider import duties in the semiconductor and pharmaceutical sectors.

"The market focus has been focused on the main news of the rate that continues to change with the Trump administration pursuing potential rates on semiconductor and pharmaceutical imports by starting a trade investigation, shortly after hinting at possible delays in existing automotive rates and suspending levies on some technology products from reciprocal duties," he explained.

On the other hand, Sutopo said based on Fed Chairman Jerome Powell's statement that the US central bank would wait for further certainty before changing interest rates and estimated that the tariff policy could trigger higher inflation and a slowdown in the economy.

Meanwhile, Sutopo said market participants were also watching the continuation of trade negotiations between the US and China, after China declared readiness to continue talks with certain conditions.