Gold Prices Fall as Ministry of Trade Explains

The Ministry of Trade (Kemendag) stated that the decline in the export reference price (HPE) and reference price (HR) for gold during the first period of June 2026 was influenced by increased investor interest in yield-based financial instruments. According to a Kemendag statement in Jakarta on Monday (1/6/2026), the gold HPE fell by 1.43% to $148,396.49 per kilogram from $150,555.29 per kilogram in the second period of May 2026. Meanwhile, the HR for gold also decreased to $4,615.65 per troy ounce (t oz) from $4,682.80 per t oz.

“During the data collection process, gold prices corrected by 1.43%. In addition to shifts in investor preference towards yield-based instruments, the gold market entered a consolidation phase, prompting profit-taking,” said Tommy Andana, Director General of Foreign Trade at Kemendag.

He added that international gold price movements were also influenced by global monetary policy direction and economic prospects.

The HPE and HR are set under Ministerial Decree No. 1416 of 2026 concerning Export Reference Prices and Reference Prices for Mineral Products Subject to Export Duties, effective from 1-14 June 2026.

The determination of gold HPE and HR is based on data and technical input from the Ministry of Energy and Mineral Resources (ESDM), referencing international market price developments. Gold prices are referenced against the London Bullion Market Association (LBMA) publications.

The HPE and HR for gold are determined through inter-ministerial coordination mechanisms, considering data, information, and current market developments analysed jointly with the Coordinating Ministry for Economic Affairs, ESDM, the Ministry of Finance, and the Ministry of Industry.