As of Apr 28, the global price of gold is about US$3,338 per ounce (around 28 grams), while in Indonesia it was 1.965 million rupiah (US$117) per gram.
This is about a 10 per cent increase compared to one month ago when it was 1.79 million rupiah.
Other countries in the region have also reported seeing symptoms of gold fever.
In Malaysia, some stores reported a 25 per cent increase in customers, according to local media.
Vietnam has also reported long queues outside stores to buy gold.
In Thailand, where gold also retains strong cultural significance, younger generations are entering the market through social media-driven financial advice. As a result, gold-trading apps and platforms are flourishing.
There were however no reports of people queuing overnight in these countries as seen in Indonesia.
While some people in Indonesia may understand that the high gold price is related to Trump’s Liberation Day, others may not, said Eko.
He added that as the cost of living in Indonesia has also gone up, people want to prepare for rainy days.
Furthermore, some people may still have money left from their Eid religious allowance, which employers handed to their staff towards the end of March, and they think it’s best to spend it on gold.
Eko said that many who queue for gold lately are young people such as Resty, and the high demand may be because Gen Z and millennials are financially more literate than older generations in Indonesia.
“Gen Z and millennials may not have a lot of money, but they are starting to invest earlier than previous generations,” Eko added.
He also said that because the two generations are digitally connected, they tend to have a heightened fear of missing out (FOMO).
Economist Fithra Faisal from securities brokerage firm Samuel Sekuritas Indonesia shared the same view.
He also said that because many Indonesians live from paycheck to paycheck, they want to gain an advantage from the current situation, as a hike in gold price seems like an easy way for them to buy and then resell quickly to profit.
“Because there is the potential that the gold price will increase further – three weeks ago it was 1.7 million rupiah per gram, then 1.8 million rupiah, then 1.9 million, then 2 million, they want to benefit from it.”