Jakarta, IDN Times – The escalating conflict in the Middle East has triggered widespread uncertainty across global financial markets. Capital markets, both domestically in Indonesia and worldwide, continue to face significant pressure.
According to data from IDX Mobile, over the past month, amidst the intensifying tensions between the United States (US)-Israel and Iran, the IHSG (Jakarta Composite Index) has plummeted by 1,114.24 points, or 13.57 percent. As the week draws to a close, the IHSG further declined by 67.03 points, or 0.94 percent, settling at 7,097.06. Concurrently, the S&P 500 index has experienced a correction of approximately 4 percent.
1. Gold Prices Correct by 16 Percent 
The spot gold price has seen a sharp correction of up to 16 percent, marking its largest decline since 1983 and reaching a level of around 4,400 US dollars per troy ounce (toz).
Antam precious metal gold prices have also consistently shown a downward trend. Yesterday, Friday (March 27, 2026), the price dropped by Rp40,000 to Rp2.81 million per gram.
Greg Shearer, JPMorgan’s Head of Metals Strategy, attributes this significant fall in gold prices to a widespread sell-off. This occurred amid a surge in oil prices, driven by the Middle East conflict, which subsequently heightened inflation concerns.
Further exacerbating this pressure are the strengthening US dollar and increasing bond yields. These factors collectively make gold less appealing compared to yield-bearing assets and could potentially alter central banks’ gold purchasing patterns.
Simultaneously, the geopolitical tensions in the Middle East are impacting global energy distribution routes, particularly through the Strait of Hormuz. This disruption amplifies inflation risks due to the inevitable spike in oil prices.
Such conditions are fueling expectations that the US Federal Reserve (The Fed) will maintain higher interest rates for an extended period. In this environment, gold, which does not offer regular yields, tends to lose its allure, especially for institutional investors seeking returns.
2. Bitcoin Surges 12 Percent 
In stark contrast to the broader market downturn, Bitcoin has demonstrated remarkable resilience. According to Indodax data, the cryptocurrency surged by approximately 12 percent over the past 60 days, trading in the range of 70,000 to 71,000 US dollars as of Tuesday (March 24).
This robust performance has significantly increased investor attention towards Bitcoin, positioning it as an attractive alternative hedge amidst the prevailing market turmoil and global instability.
Considering these juxtaposed data points, the assertion that Bitcoin strengthens while stock and gold markets weaken due to global turbulence is undeniably a fact.
3. Navigating Global Market Dynamics 
Responding to these dynamic market shifts, Antony Kusuma, Vice President of Indodax, emphasized that Bitcoin’s strong performance during times of crisis is not a novel phenomenon. Instead, it’s a recurring pattern observed during previous events such as the COVID-19 pandemic, the US-Iran tensions in 2020, and the Russia-Ukraine conflict.
“Bitcoin’s decentralized nature, its 24-hour tradability, and its independence from conventional banking systems make it exceptionally relevant amid the disrupted stability of financial systems caused by geopolitical conflicts. This endows Bitcoin with both practical functionality and potential as an alternative hedge,” explained Antony.
Despite this resilience, the cryptocurrency market remains inherently volatile, with investor sentiment generally leaning towards caution. Macroeconomic factors, including inflation and interest rate policies, will continue to be crucial determinants of future price movements.
Therefore, investors are strongly advised to prioritize robust risk management and thoroughly comprehend the intricate market dynamics before making any investment decisions.
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