Gold Prices Volatile, Surabaya Residents Delay Investment Before Eid

SURABAYA — As Eid al-Fitr approaches, the financial rhythm of ordinary people shifts. Whilst many residents purchased gold for investment at the beginning of the year, some are now capitalising on their gold holdings to meet Eid expenses.

This trend is evident at Pegadaian Dinoyotangsi Branch in Surabaya, East Java. Branch Manager Deddy Dharmawan stated that public interest in purchasing gold currently is not as high as it was several months ago.

“Compared with January and February, gold investment interest has certainly declined somewhat. At the beginning of the year, it was at its peak,” Dharmawan told journalists including Kompas.com.

According to him, fluctuating gold prices have prompted many residents to wait before making a purchase decision.

The phenomenon is quite peculiar. When gold prices rise, many people rush to buy, fearing prices will continue climbing. However, when prices fall, buying interest does not automatically increase.

“People remain worried that gold prices will drop further, so they choose to wait until they are truly confident,” he added.

People are directing finances towards new clothing, preparing traditional Eid foods, and other household needs.

This situation has actually increased pawning activity at Pegadaian. Specifically at the Dinoyotangsi Branch, pawn transactions have risen approximately 10 percent compared to normal months.

“Pawning activity is becoming busier. One reason is to pay for employee bonuses and Eid expenses,” said Dharmawan.

Current valuations for pawn transactions show 24-carat gold at approximately Rp2.5 million per gram, whilst jewellery gold is valued at around Rp2.37 million per gram.

Besides gold, some clients also pawn motorcars, electronic goods, and luxury items, though not in quantities comparable to gold. The pawning activity is predominantly among women, ranging from housewives to working women to socialites.