Gold Prices Projected to Hit New Highs After Eid, Rupiah Under Pressure

KBRN, Jakarta: Global gold prices are projected to reach new record highs in April 2025. This surge in gold prices is likely to coincide with a weakening of the Indonesian rupiah against the US dollar.

"My target for March was a gold price of around USD 3,092 per troy ounce. In reality, on Monday (March 31, 2025), gold prices surpassed USD 3,120 per troy ounce," said Money Market Analyst Ibrahim Assuaibi on Tuesday, April 1, 2025, as reported by rri.co.id.

According to Ibrahim, global gold prices will continue upward after the Eid holiday. "Global gold prices will likely break through USD 3,150 per troy ounce in April," Ibrahim said.

The implementation of President Trump's import tariff policy in the US on April 2 is influencing gold price movements. This tariff increase applies not only to China, Europe, Canada, and Mexico.

"Countries with trade surpluses with the US, including Indonesia, could also be subject to this tariff policy. Implementing these tariffs will trigger trade war issues," Ibrahim explained.

Furthermore, the geopolitical conflict in the Middle East continues to escalate. Israel persists with its brutal attacks on the Gaza Strip, even on the first day of Eid.

The US has also issued threats against Iran if it refuses to negotiate its nuclear program. "For America, this means war against Iran," Ibrahim said.

Given these conditions, Ibrahim anticipates that the rise in gold prices will be accompanied by a weakening of the rupiah against the US dollar. He is concerned that the rupiah could experience a significant depreciation.

"It is highly likely that upon market reopening after April 7, the rupiah could approach the IDR 17,000 per US dollar. In addition to global conditions, Bank Indonesia did not operate during the Eid holiday period, meaning no market intervention," Ibrahim concluded.

As of Tuesday afternoon, April 1, 2025, Bloomberg data showed the rupiah exchange rate at IDR 16,699 per US dollar, down 0.72 percent or 119 points from the previous position.

Global gold prices were also recorded at USD 3,133 per troy ounce. Meanwhile, the gold price issued by the state-owned diversified mining company PT Antam in Indonesia, as quoted from logammulia.com, reached IDR 1,826,000 per gram.