RRI.CO.ID, Nusantara - Gold prices have come under pressure recently after global crude oil prices fluctuated during the long holiday period. Currently, gold is traded at approximately IDR 2.5 million per gram in Indonesia, while global gold trades at about $4,550 per ounce.

Looking back at the beginning of the Russia-Ukraine war, global gold prices also experienced sharp declines. Prices dropped from around $2,000 per ounce to $1,600 per ounce in September 2022 amid fears of rising inflation.

War can trigger short-term pressure on gold prices, but it does not always suppress gold for the long term. Markets generally recognize that during conflict, investor confidence can shift from one defensive asset to another.

Gold emerges as the premier safe-haven when investor trust in money weakens due to war or inflation. At times, the market hits a saturation point, allowing gold to recover even while conflicts continue.

Currently, as gold experiences pressure, it still has room to rise in the medium to long term. Inflation pressures may increase if wars escalate, but gold will remain attractive when investors worry about potential losses in other investments.

Therefore, gold continues to be recommended as an investment tool in the current conflict. Its value may be volatile in the short term, but it remains a trusted store of value over time.

Investing in gold also reflects Indonesia’s perspective on global stability. By understanding safe-haven trends, investors can protect their portfolios while fostering responsible international investment awareness.

Writer: Gunawan Benjamin (Economist, Islamic University of North Sumatra)