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 202lar. This policy follows the trend of the strengthening US Dollar exchange rate and the rise in US government bond yields in the global market.
Based on the latest data, the gold HPE experienced a decrease of 5.36 per cent to 135,512.62 US dollars per kilogram. This figure dropped compared to the second period of June 2026, which was recorded at 143,190.64 US dollars per kilogram. In line with this, the gold HR 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 decrease in the HPE and HR of gold is influenced by the strengthening US dollar exchange rate and the increasing yields of US government bonds,” said the Director General of Foreign Trade at the Ministry of Trade, Tommy Andana, in a written statement in Jakarta on Wednesday (1/7).
Tommy explained that these macroeconomic conditions have prompted investors to reallocate their investment portfolios. Gold, which is a non-yielding asset that does not provide interest or dividends, becomes less attractive compared to other financial instruments when interest rates remain high.
Interest rate policies that remain at high levels have also exerted additional pressure on global gold prices. Investors tend to choose interest-bearing investment instruments that offer more certain rates of return amidst the strengthening US dollar.
“This shift in investment subsequently impacts the weakening demand for gold in the global market. Meanwhile, the steady supply of gold amidst declining demand has triggered a price correction in the international market,” Tommy continued.
The determination of the HPE and HR for gold is not conducted unilaterally, but through close coordination across ministries and agencies. The primary technical data is sourced from the Ministry of Energy and Mineral Resources (ESDM), referring to official publications from the London Bullion Market Association (LBMA).
The coordination process also involves considerations and input from the Coordinating Ministry for Economic Affairs, the Ministry of Finance, and the Ministry of Industry to ensure that the reference prices remain relevant to international market conditions and maintain national export competitiveness.
Tommy added that the increase in the HPE for copper concentrate is also influenced by high global industrial demand for copper.