Ministry of Trade: Decreased Demand Causes Gold Prices to Weaken Again

The Ministry of Trade (Kemendag) stated that a decline in demand for precious metals in the global market has once again caused the Export Benchmark Price (HPE) and Reference Price (HR) for gold to weaken during the first period of August 2026.

In a statement in Jakarta on Saturday, the Director General of Foreign Trade at the Ministry of Trade, Tommy Andana, explained that the decline in gold’s HPE and HR occurred due to the strengthening of major global currencies and rising bond yields in international markets. Furthermore, interest rate policies remaining at high levels have also pressured gold prices, as gold does not provide periodic returns, prompting investors to shift towards other instruments with more measurable risks and returns.

“This shift in investment has directly impacted the decrease in gold demand in the global market. With the global gold supply remaining adequate, this situation has created pressure that triggered price corrections in the international market,” said Tommy.

The HPE for gold was set at 130,921.50 US dollars per kilogram, a 0.7 per cent decrease from the second period of July 2026, which stood at 131,839.51 US dollars per kilogram. The gold Reference Price (HR) also fell to 4,072.12 US dollars per troy ounce (t oz) from 4,100.67 US dollars per t oz.

During the data collection period, the value of gold decreased by 0.7 per cent. Overall, this series of factors ultimately led to the decline in the HPE and HR for gold in the first period of August 2026.

The HPE and HR for gold were established under the Decree of the Minister of Trade Number 1669 of 2026 concerning the Export Benchmark Price and Reference Price for Mining Products Subject to Export Duties. This Ministerial Decree is applicable for the period of 1–14 August 2026.

The HPE and HR for gold were also determined based on data and technical input from the Ministry of Energy and Mineral Resources (ESDM), referencing publications from the London Bullion Market Association (LBMA). The determination of the HPE and HR for gold is conducted through cross-ministerial and inter-agency coordination, based on information, data, and input provided by the Coordinating Ministry for Economic Affairs, the Ministry of Energy and Mineral Resources, the Ministry of Finance, and the Ministry of Industry.