International News 05 May 2025
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Gold prices stabilize at US$3,239, set for worst week in more than 2 months
The price of gold has fallen significantly in recent weeks, marking the most substantial drop in over two months. This decline is attributed to a reduction in trade tensions, which has led to a decrease in demand for safe-haven assets. The spot gold price remained stable on Friday at $3,239.15 per troy ounce, marking a weekly decline of over 2%. This marks the sharpest decline since late February. US gold futures for the June 2025 delivery increased by 0.8% to reach $3,247.90 per troy ounce. The potential de-escalation in the trade war between the US and China, with talks being sought on tariffs, has led to a shift in market sentiment towards gold as investors focus on the US nonfarm payrolls report. As tensions ease, gold prices are being pressured downward, prompting increased retail buying activity. Gold bullion, often held as a reliable investment during times of political and financial uncertainty, reached a record high of $3,500.05 per ounce on April 22.
Oil Prices Gain 0.6%, China Open to Trade Talks with US
Crude oil prices surged in Asian markets following China's openness to talks with the US, fuelling hopes of a resolution to their trade war. Brent crude for July delivery rose by 0.6% to $62.51 per barrel, while West Texas Intermediate for June delivery increased to $59.62 per barrel. The Chinese Ministry of Commerce has confirmed that the US has initiated dialogue, which has eased fears of a global economic downturn amid escalating trade tensions. Oil demand concerns were overshadowed by potential trade war de-escalation and Trump's threat of secondary sanctions on Iranian oil buyers, which further supported oil prices. The OPEC+ group's planned production increase is coinciding with these developments, influencing market sentiment positively.
Indonesia's Economic Growth Projected to Only 4.91% in the First Quarter of 2025
It is anticipated that Indonesia's economy will expand by approximately 4.91% in the initial quarter of 2025, representing a decline from the 5.11% growth recorded in the corresponding period of 2024. This shift is attributed to a combination of domestic and external pressures. Bank Permata's Chief Economist, Josua Pardede, has highlighted that economic growth is constrained by various factors, including macroeconomic data, business and consumer surveys, and real sector indicators. Household consumption, a major contributor to the economy, is expected to grow by 4.50%, showing a decrease compared to the previous year. Despite a slight decline in consumer confidence, the Consumer Confidence Index indicates a positive outlook. While public confidence remains optimistic according to the Current Economic Conditions Index and Consumer Expectations Index, there are concerns about income and durable goods purchases, especially among the lower middle-income group, indicating ongoing challenges to purchasing power.