JFX CEO Explains Why Gold Prices Do Not Always Rise During Conflicts
Jakarta (ANTARA) - The President Director of PT Bursa Berjangka Jakarta (JFX), Yazid Kanca Surya, has revealed the reason why gold prices do not always rise amid global conflicts, despite being known as a safe haven asset.
He explained that the movement of gold prices in situations of geopolitical uncertainty is heavily influenced by the dynamics of the energy sector. The need for liquidity to meet energy supplies often forces countries to sell gold reserves.
“Energy for some countries that have high gold supplies must have high liquidity. A lot of gold is sold in the market. For what? To buy energy,” Yazid stated during a media gathering in Jakarta on Wednesday.
According to him, this condition can cause gold price movements to run counter to conventional economic theory.
“It should rise, right? It’s a safe haven commodity. But it doesn’t (rise), it falls. Why? Because energy is disrupted,” he said.
Yazid also assessed that the global commodities market is currently experiencing a shift in behaviour. Previously, market participants focused on price efficiency at the lowest cost, but now the orientation has shifted to supply certainty.
In response to this change, JFX as a futures exchange is strengthening its trading ecosystem, including promoting the development of more flexible and accessible contracts and expanding retail investor participation.
From an innovation perspective, JFX is preparing micro and nano-sized contracts for several commodities such as gold, silver, copper, and energy. These products are designed to broaden market inclusion, particularly for investors with limited capital.
JFX is also developing digital gold trading that combines the ease of technology-based transactions with the certainty of physical gold underlying assets. This scheme is expected to balance accessibility and security aspects for investors.
In line with that, Yazid conveyed that JFX continues to promote the strengthening of a transparent, supervised trading ecosystem that provides better protection for all market participants.
In the physical commodities sector, JFX controls more than 95 percent of Indonesia’s tin export market share, with transaction values reaching approximately 1.7 billion US dollars in 2025.
Meanwhile, in derivative trading, the olein contract (OLE01) contributes 38.7 percent to the total volume of Exchange Traded Derivatives (ETD) transactions at JFX, equivalent to 615,028 lots.
The Loco Gold contract dominates over-the-counter (OTC) transactions with a portion of 85.2 percent of the total volume.
This product is part of JFX’s instrument diversification, with transaction trends showing continuous growth in recent years.