Gold Investment Strategy Amid Fluctuating Prices: Insights from a Psychologist

Global gold price fluctuations are triggered by rising geopolitical tensions, particularly the conflict in the Middle East. This situation has led to unstable gold price movements, raising questions about the right time to buy or wait. In a Kompas Bisnis discussion on KompasTV on Friday (27/3/2026), consumer psychologist Irfan Agia emphasised that the current gold price volatility is influenced by various global factors. These factors include inflation, interest rates, and geopolitical dynamics. Gold is known as a stable investment, but it remains susceptible to short-term fluctuations due to these global factors. Irfan Agia reminds the public not to be reactive when making investment decisions during turbulent markets. He suggests that investors should have a clear strategy before buying gold. “The key is not to be reactive before making a decision,” said Irfan. He also stresses the importance of aligning investments with personal risk profiles, rather than acting out of panic or following the crowd. Gold as a Long-Term Investment Gold remains relevant as a long-term investment instrument. However, according to Irfan, gold is less ideal for investors seeking quick profits. In the investment context, gold is more suitable as a hedging tool than an instrument for short-term gains. If the goal is quick profit, other instruments like stocks may be more appropriate, although they carry higher risks. Things to Consider Before Buying Gold Irfan Agia also outlined several important aspects to consider before investing in gold: - Investment goals: whether for value protection or quick profits - Time horizon: ideally 3–5 years for gold investments - Price trends: do not focus solely on daily ups and downs - Liquidity: gold is not as quickly convertible to cash as other assets - Funding source: use ‘cold money’, not emergency funds Irfan also warns about psychological risks such as FOMO (fear of missing out), which can lead investors to make impulsive decisions when gold prices rise or fall sharply. Amid global economic uncertainty and rising geopolitical tensions, gold remains a relevant investment instrument, especially for the long term. Irfan emphasises that the main key is not just timing, but planning and discipline in investing. “That’s what we need to consider before buying,” he said. With volatility still high, the public is advised to be more rational and not hasty in making decisions, and to always align investments with individual goals and financial capabilities.