Gold Export Reference Price Declines Due to US Dollar Strengthening

The Ministry of Trade (Kemendag) has set a decrease in the Export Reference Price (HPE) and Reference Price (HR) for gold commodities for the first period of July 2026. This policy was adopted following the trend of a strengthening United States (US) dollar exchange rate and rising yields on US government bonds in the global market. Based on the latest data, the HPE for gold experienced a decline of 5.36 percent to 135,512.62 US dollars per kilogram. This figure fell compared to the second period of June 2026, which was recorded at 143,190.64 US dollars per kilogram. In line with that, the HR for gold was also corrected to 4,214.92 US dollars per troy ounce (t oz) from the previous 4,453.73 US dollars per t oz. “The decline in the HPE and HR for gold was influenced by the strengthening of the US dollar exchange rate and the increase in US government bond yields,” said the Director General of Foreign Trade at the Ministry of Trade, Tommy Andana, in a written statement in Jakarta, Wednesday (1/7). Tommy explained that these macroeconomic conditions had encouraged investors to shift their investment portfolios. Gold, which is a non-yielding asset that provides no returns in the form of interest or dividends, becomes less attractive compared to other financial instruments when interest rates remain high. The high interest rate policy continues to put additional pressure on world gold prices. Investors tend to choose interest-bearing investment instruments that offer more certain rates of return amid the strengthening of the US dollar. “This investment shift then impacts the weakening demand for gold in the global market. Meanwhile, the maintained gold supply amid declining demand triggers a price correction in the international market,” Tommy continued. The determination of the HPE and HR for gold is not carried out unilaterally, but through strict cross-ministerial and institutional coordination. The main technical data is sourced from the Ministry of Energy and Mineral Resources (ESDM), which refers to the official publications of the London Bullion Market Association (LBMA). The coordination process also involves consideration of data and input from the Coordinating Ministry for Economic Affairs, the Ministry of Finance, and the Ministry of Industry to ensure the reference price remains relevant to international market conditions and maintains national export competitiveness.