Gold counters on Bursa Malaysia surged as safe haven demand rose due to US economic concerns. Key stocks like Tomei Consolidated, Poh Kong Holdings, and Aumas Resources saw notable gains. Predictions suggest gold prices may exceed US$3,000 per ounce soon due to market dynamics and geopolitical tensions.
Gold counters on Bursa Malaysia experienced a significant surge due to heightened demand for gold as a safe haven amid increasing concerns about the US economy. In particular, jewelry retailers such as Tomei Consolidated Bhd saw an increase of up to 8% reaching RM1.70, and Poh Kong Holdings Bhd rose nearly 4% to RM1.05. Additionally, Aumas Resources Bhd, which operates a gold mine in Sabah, also advanced 8% to 81 sen.
The TradePlus Shariah Gold Tracker, an exchange-traded fund that tracks gold’s returns, increased by 3.5% and closed at RM4.15 on Friday. This surge in gold prices is linked to geopolitical instability and trade tensions affecting the global economy. Currently, prices are projected to approach US$3,000 (RM13,337) per ounce.
Industry experts forecast that gold prices are likely to exceed the US$3,000 mark this week, with predictions by Hong Kok Wah, head of trading at Go Capital Growth Sdn Bhd, suggesting that gold could hit US$3,200 by year-end.
The demand for gold has intensified since the Trump administration began, prompting concerns of a short squeeze in the bullion market. Traders are reportedly moving gold from the Bank of England to the US to evade possible tariffs imposed by Trump on imports.
The Bank of England holds significant gold reserves on behalf of both domestic and international entities, contributing to the ongoing volatility. According to United Overseas Bank’s note on March 10, the unpredictable trade policies of the Trump Administration may further drive gold bullion flow into the United States, exacerbating the global short squeeze in the gold market.
In summary, Bursa Malaysia’s gold counters have surged in response to escalating safe haven demand due to economic uncertainties surrounding the US. With significant price increases predicted in the gold market, particularly influenced by geopolitical factors and trade policies, investors are closely monitoring these dynamics. The movement of gold reserves from the UK to the US reflects the heightened urgency surrounding gold as a protective asset during these turbulent times.
Original Source: theedgemalaysia.com
