NEW DELHI – Gold prices in Indonesia and India have risen, in contrast to the international market where prices have declined.

Gold bullion prices from PT Aneka Tambang Tbk (Antam/ANTM) posted a significant increase of IDR 26,000 per gram.

Antam gold is now priced at IDR 1,900,000 per gram, up from IDR 1,874,000 in the previous session.

This increase marks a recovery following the decline on Thursday, 29 May 2025.

Antam’s buyback price also rose by IDR 26,000 per gram, reaching IDR 1,744,000 per gram from the previous IDR 1,718,000.

Meanwhile, Antam gold sold through Pegadaian fell by IDR 25,000, dropping to IDR 1,927,000 per gram from IDR 1,952,000.

Gold prices in India also rebounded, similar to Indonesia. This marks the first increase after four consecutive days of decline, on Friday (30/5).

The rise was driven by strong domestic demand during the wedding season and global geopolitical tensions, which increased gold’s appeal as a hedge asset.

According to data from Goodreturns, as reported by CNBC TV18, the price of 24-carat gold rose ₹270 to ₹97,310 per 10 grams. The price of 22-carat gold also rose ₹250 to ₹89,200, while 18-carat gold increased ₹210 to ₹72,990 per 10 grams.

Despite the daily increase, gold prices have declined by around ₹9,500 per 100 grams over the course of this week.

The drop was largely due to global sentiment and a 0.2% strengthening of the US dollar index, which made gold more expensive for international buyers.

In the international market, gold prices have continued to weaken. Spot gold was down 0.5% at USD 3,300.59 per troy ounce, while US gold futures were at USD 3,298.30 per ounce.

Investors are now awaiting US inflation data, particularly the Personal Consumption Expenditures (PCE) Index, the Fed’s preferred inflation gauge, which may influence interest rate policy.

“The gold market is in a consolidation phase. The trading range is widening due to the stronger dollar,” explained Brian Lan, Managing Director of GoldSilver Central, Singapore, as quoted by the Economic Times.

Mary Daly, President of the Federal Reserve Bank of San Francisco, also stated that while a rate cut is still possible this year, the Fed must proceed cautiously and not rush into loosening monetary policy.

Meanwhile, the US gold market faces uncertainty following a federal appeals court’s decision to temporarily reinstate controversial import tariffs proposed by Donald Trump.

This political turmoil, combined with weak US GDP data and rising unemployment claims, has provided further support for gold prices.

“Gold dropped after the court blocked Trump’s tariff plan, but later rebounded due to the appeal and weak economic data,” said Rahul Kalantri, Vice President of Commodities at Mehta Equities.

He added that support lies at ₹94,910 and resistance at ₹95,940 per 10 grams.

Aksha Kamboj, Vice President of the India Bullion and Jewellers Association (IBJA), said gold is in a consolidation phase and that investors can use this price correction for long-term accumulation.

“Today’s PCE data could shift market sentiment,” she noted.

Sandip Raichura, CEO of Retail & Distribution at PL Capital Group, expressed a bullish long-term view.

“From USD 2,000 per ounce in January 2024 to USD 3,300 now, gold has risen 65% in 18 months. Structural demand from ETFs and central banks remains strong. We see potential for gold to reach USD 3,700 per ounce next year,” he said.

Raichura added that inflation uncertainty and global monetary policy make gold an attractive hedge asset.

“While delayed rate cuts are negative for gold, slowing economic growth and institutional buying create a price floor,” he explained.

A combination of domestic factors like the wedding season and global factors such as US economic uncertainty and geopolitical tensions continues to make gold an appealing investment. Despite short-term fluctuations, the long-term outlook for gold remains positive. (EF/ZH)