Macro Economics Effect to Gold Price Change in Indonesia
Gold is an investment that can provide a sense of security and it is still in demand from the past until now. This happens because it has a stable value and attractive color. Aims of this study is to determine effect of macroeconomics to gold price change in Indonesia. Gold price is the dependent variable and the macroeconomic variable is an independent variable, which is proxied by exchange rates, interest rates and inflation. Using quarterly data, from 2011.1 – 2018.4 and regression methods, originating from OJK, BI, BPS, Antam. Results obtained that exchange rate have a positive effect on the price of gold and interest rates have a negative effect on the price of gold. But, inflation is not significant to the price of gold. Government needs to maintain a stable exchange rate and inflation to make the price of gold stable, while interest rates will follow the development of the exchange rate. In addition, gold craftsmen need to innovate their products, so that investors not only save the gold, but also use it as jewelry, so that gold craftsmen will be able to gain added value, and wider their market share.