Jakarta – Trump’s Tariff Policy Triggers Gold Prices to Soar to Rp 1.46 Million
Gold prices surged to their highest level amid global economic uncertainty triggered by U.S. President Donald Trump’s tariff policies. Many investors are looking at gold as a safe investment, commonly referred to as a safe haven.
Trump’s tariff plan has sparked concerns over escalating geopolitical tensions and has led to a weakening of economic growth. Gold prices nearly touched US$ 3,000 per troy ounce driven by Trump’s controversial policies.
Quoted from Reuters, Friday (31/1/2025), spot gold prices rose to a record high of US$ 2,798.40 per troy ounce or around Rp 1.46 million per kg (exchange rate Rp 16,255).
“There are concerns that some growth may slow down due to the policies and tariffs that the current Trump administration wants to implement,” said Phillip Streible, head of market strategy at Blue Line Futures.
Trump’s tariff plan is widely regarded as inflationary and potentially triggering a trade war, thereby increasing demand for safe-haven assets like gold bullion. Traditionally, gold is considered a hedge against price pressures and geopolitical uncertainty.
“I see (gold) trying to reach the level of US$ 2,900 (per troy ounce) at some point during this first quarter, after breaking through, we will set a new level.” “Even at one point, it could reach US$ 3,000,” said Bob Haberkorn, senior market strategist at RJO Futures.
Amid concerns about the US import tariff plans, US gold futures have been trading at a premium to spot prices for several months and widened the price gap further on Thursday.
As a sign of this concern, 12.9 million troy ounces of gold have been delivered to COMEX-approved warehouses since the end of November. This increased the stock there by 73.5% to 30.4 million ounces, the highest since July 2022. The shipments came from London, Switzerland, and other major gold trading hubs.
The London Bullion Market Association said on Thursday that they are monitoring the situation and coordinating with CME Group as the owner of the COMEX exchange, and US authorities.
The stock and liquidity of the London gold market remain strong with an average daily trading volume of 47.1 million ounces since early January.
