Gold prices continue to strengthen in the global market, in line with rising investor demand for safe-haven assets amid growing global uncertainty. Antam data as of 28 January 2026 recorded gold prices at IDR 2.968 million per gram.
An economist from the Faculty of Economics and Business, Universitas Gadjah Mada (FEB UGM), Wisnu Setiadi Nugroho, Ph.D., explained that multiple factors drive the increase in gold prices. One of them is the US Federal Reserve’s policy and a weakening US dollar.
“The market expects a cut in US interest rates, which weakens the dollar and at the same time increases the attractiveness of gold as a safe-haven asset,” he said on Wednesday (28/1/2025) at FEB UGM.
Wisnu added that geopolitical uncertainty has also influenced the current rise in gold prices. He claims that the current unstable global situation, ranging from military tensions to economic sanctions, has driven up demand for gold, making it a popular hedge against geopolitical risk.
Another factor is demand from central banks and Exchange Traded Funds (ETFs). Central banks in developing countries are actively increasing their gold reserves, while institutional investors are becoming more aggressive in purchasing gold through ETFs.
“Inflation and uncertainty in stock markets make gold a primary choice as a long-term hedge,” he added.
If global economic and political conditions remain unstable, Wisnu predicts that the upward trend in gold prices will continue. Nevertheless, a strengthening US dollar or a significant increase in US interest rates could put pressure on gold prices.
Furthermore, Wisnu explained the reasons why the public chooses gold as an investment instrument. Among them are gold’s value stability and its role as an inflation hedge, its high liquidity or ease of trading, and its function as a haven. Another factor is that gold carries no third-party risk, as physical gold is free from default risk by a third party, unlike bonds or digital assets.
So, will gold investment remain stable? Wisnu explained that, historically, gold prices have tended to be stable and have increased over the long term. It is because gold is protected against inflation, deflation, and economic crises.
“However, in the short term, like other investment instruments, there will be fluctuations that usually respond to interest rate policies and the value of other foreign currencies such as the USD, EUR, and GBP,” he explained.
Wisnu noted that global political and economic turmoil is encouraging people to strengthen their portfolios by adding more stable assets, such as gold. This situation signals an increase in global uncertainty indicators.
“Many people buying gold is also a form of response to the ongoing monetary policy. Investors are looking for assets that are safe from volatility,” he concluded.
Report by: Kurnia Ekaptiningrum
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