KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Gold prices dipped slightly on Wednesday as investors awaited a critical U.S. inflation report that could influence the Federal Reserve’s policy decision in September.
Key Highlights:
Gold’s Slight Decline: Spot gold eased 0.2% to US$2,460.87 per ounce by 0327 GMT, following a record high of US$2,483.60 last month. U.S. gold futures also inched down 0.3% to US$2,500.30.
Focus on U.S. Inflation Data: Investors are holding back as they await the U.S. Consumer Price Index (CPI) data for July, expected to show a 0.2% month-on-month inflation increase. The data could be pivotal in setting the tone for the Federal Reserve's upcoming policy meeting.
Potential Gold Price Drop: According to financial market analyst Kyle Rodda, gold could drop to US$2,300 if the CPI data does not align with expectations for a rate cut. However, a weakening U.S. economy could push gold prices higher in the long term as the Fed may be forced to cut rates significantly.
Cooling Inflation Signs: U.S. producer prices rose less than expected in July, reinforcing the market's belief that the Federal Reserve may soon reduce interest rates. Traders are now pricing in a 54% chance of a 50-basis-point rate cut in September.
Geopolitical Risks and Gold: Gold, often seen as a safe haven during geopolitical tensions, remains in focus as investors watch for potential retaliation from Iran following recent developments in Gaza.
Other Precious Metals: Spot silver fell 0.6% to US$27.68, platinum dropped 0.5% to US$931.73, while palladium edged up 0.1% to US$939.25 after reaching its highest level since July 24 in the previous session.
Outlook: The upcoming U.S. inflation data will be crucial in determining the short-term direction of gold prices, with potential rate cuts by the Federal Reserve playing a significant role in the market’s movements.
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