US Enters Partial Government Shutdown, Physical Gold Prices on JFXGOLD X Drop IDR 460,000 per Gram
Jakarta, MetalNews Digital – The United States government has entered a partial government shutdown since 31 January 2026 after Congress failed to reach an agreement on the federal budget for fiscal year 2026. The situation affects approximately 45 percent of federal employees, with around 500,000 workers continuing to work without pay, while roughly 480,000 others have been temporarily furloughed.
Several government agencies have been impacted, including the Department of Homeland Security, Department of Defense, Department of Education, Department of Health and Human Services, and Department of Transportation. However, essential services such as Social Security payments, Medicare and Medicaid, the US Postal Service, and operations of National Parks and the Smithsonian museums remain active.
The US House of Representatives is scheduled to hold a vote on a funding package on Monday, which could potentially end the shutdown by Tuesday.
Fiscal uncertainty in the United States has weighed on global financial markets. Gold prices recorded a sharp correction to the range of US$4,700 to US$4,800 per troy ounce, reflecting a significant intraday decline from previous record highs. Gold prices fell by approximately 1.5 percent amid broad based pressure across asset classes, pushing prices below the US$4,800 level.
The decline was driven by rising expectations of tighter monetary policy following hawkish signals from prospective Federal Reserve officials, alongside a strengthening US dollar. The emergence of Kevin Warsh as a hawkish figure within the Federal Reserve has boosted expectations for higher US Treasury yields and a stronger dollar. Higher yields have reduced the relative attractiveness of gold and triggered profit taking after a parabolic price rally.
Despite the correction, persistent inflation pressures continue to support gold’s role as a medium term inflation hedge, particularly if real yields remain contained.
Global market pressure was also reflected in physical gold prices on the JFXGOLD X Physical Gold Exchange, part of the Bursa Berjangka Jakarta or Jakarta Futures Exchange, the first and largest futures exchange in Indonesia. After briefly surpassing IDR 3 million per gram, physical gold prices corrected to around IDR 2.5 million per gram. On Monday, 2 February 2026, physical gold prices fell by approximately 15 percent, equivalent to IDR 460,000 per gram. Prices declined to US$4,685.85 per troy ounce, or IDR 2,571,743 per gram, in line with global gold price weakness and a stronger US dollar.
Disclaimer:
Price information and market analysis are provided for informational purposes only and do not constitute investment advice. Market conditions may change at any time. Readers are advised to conduct their own analysis and make independent investment decisions.
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