Gold Prices Drop, JCI Predicted to Strengthen as US-China Trade Tensions Ease
Global gold prices fall sharply while Indonesia’s stock index (JCI) is expected to rise as US-China trade relations improve.
Gold Prices Fall Amid Easing Global Tensions
Global gold prices have dropped significantly by 1.4% in the last two days, reaching USD 3,277.84 per troy ounce. This decline follows a major agreement between the United States and China to reduce import tariffs, which has decreased demand for gold as a safe haven asset.
As trade relations stabilize, investors are shifting funds toward riskier instruments like equities. Lower inflation expectations have also weakened the appeal of gold as a hedge.
JCI Predicted to Strengthen: Key Levels and Top Sectors
The Jakarta Composite Index (JCI) is expected to strengthen during the May 14, 2025 trading session. Analysts project support at 6,759 and resistance at 7,075. The bullish outlook is driven by renewed foreign investor interest and improved global sentiment following the US-China trade deal.
Top-performing sectors include consumer goods (ICBP, MYOR), infrastructure (TLKM, JSMR), and energy (PGAS, PTBA). However, analysts warn that gains may be limited, with a potential correction near the psychological resistance at 6,970–7,000.
Market Sentiment and Investment Strategy
As global tensions subside, Indonesia’s equity market is regaining appeal. Yet, investors are advised to remain cautious due to market volatility and closely watch interest rate policies that could impact capital flows.
The decline in gold prices and a stronger JCI signal a market shift toward cautious optimism. The easing of global trade conflict opens new opportunities, but discipline and selectivity remain crucial in navigating a still-volatile market
