Jakarta. International and domestic gold prices fell sharply at the end of January as shifting expectations around the US Federal Reserve and a rebound in equity markets prompted investors to rotate out of safe-haven assets.

Spot gold plunged 8.15% to $4,893.20 (Rp 82,076,090) per ounce on Saturday, while silver suffered an even steeper drop, sliding 25.5% to $85.34 per ounce. The selloff marked a sharp reversal after a year-long rally in precious metals driven by geopolitical risks, inflation concerns, and demand for defensive assets.

In Indonesia, local benchmark prices mirrored the global slump. Gold bars produced by state-owned miner Aneka Tambang, widely used as a retail investment reference, fell sharply on Saturday. Antam gold prices dropped Rp 260,000 per gram to Rp 2.86 million, down from Rp 3.12 million previously. The decline pulled prices further away from their record high of Rp 3.168 million per gram, reached just two days earlier on Jan. 29.

Antam’s buyback price also fell steeply, down Rp 285,000 to Rp 2.65 million per gram, reflecting weaker domestic demand as investors reassessed their portfolios.

Market participants pointed to developments in the United States as a key trigger. Precious metals sold off after President Donald Trump nominated Kevin Warsh as the next chair of the Federal Reserve, a move that appeared to ease concerns over the central bank’s independence and sent the US dollar higher. A stronger dollar typically pressures gold and silver prices, which are denominated in US currency.

Financial markets were volatile following the announcement. US equities fell on Friday, with the S&P 500 down 0.4%, the Dow Jones Industrial Average losing 179 points, and the Nasdaq Composite sliding 0.9%. Despite the equity dip, the dollar rallied, reinforcing the pullback in metals.

Analysts said gold and silver were vulnerable after a prolonged surge that had left prices looking overstretched. The rally had been fueled by worries over global debt, tariff threats, political uncertainty, and high equity valuations. But as sentiment shifted, investors locked in profits. Bitcoin, often described as “digital gold,” also dropped nearly 6%, falling toward $84,000.

In Indonesia, the correction in gold prices coincided with renewed interest in equities after one of the most turbulent weeks in the country’s stock market in recent years. The Jakarta Composite Index fell nearly 7% during the Jan. 26–30 period amid MSCI-related concerns, before stabilizing and rebounding after regulatory measures and high-profile resignations at the stock exchange and financial watchdog.

The rebound encouraged some local investors to return to stocks, reducing demand for gold as a defensive hedge. With global monetary policy expectations and local market sentiment both shifting, analysts warned that gold prices could remain volatile in the near term.