Gold Price Surged 64 Per Cent Last Year; What Are 2026 Projections?
Jakarta — The Indonesia Commodity and Derivatives Exchange (ICDX) recorded gold prices surging 64 per cent throughout 2025.
The price increase is expected to continue this year amid global economic and geopolitical uncertainty.
Tiffani Safinia, an analyst from ICDX Research and Development, stated that throughout last year gold prices surged 64 per cent and recorded 53 all-time highs. Beyond the price increase, demand for gold from central banks remained elevated.
Throughout 2025, purchases of gold by global central banks were estimated to reach approximately 863 tonnes.
“2025 became one of the best years for gold in several decades, whilst simultaneously reinforcing its role as a safe-haven asset and a relevant diversification instrument amidst global uncertainty,” she said in Jakarta on Wednesday (11 March 2026).
According to her, the gold price rally throughout last year was influenced by a combination of global economic and geopolitical factors.
One of the primary drivers was the monetary easing policy by the United States Federal Reserve through three interest rate cuts totalling 75 basis points.
Additionally, geopolitical tensions across various regions strengthened demand for gold as a hedge asset.
The conflict in the Middle East between Israel and Iran, the Russia-Ukraine war, and heightened tensions between the United States and China became factors supporting the increase in precious metals prices.
Tiffani added that volatility in the movement of the US dollar, influenced by uncertainty surrounding the direction of monetary policy and interest rate expectations, also drove investors to increase their gold investment allocations.
“This provided an illustration that a combination of macroeconomic and geopolitical factors drove the gold rally throughout 2025,” she said.
For this year, the outlook for gold prices is estimated to remain positive despite being marked by high volatility.
Tiffani assessed that gold’s movement in the short term would still be influenced by US dollar dynamics, bond yields, and developments in global geopolitical conflicts.