KUALA LUMPUR, Nov 6 (Bernama) -- Bursa Malaysia closed higher today, buoyed by supportive local economic policies, positive sentiment from strong technology stocks earnings, and a favourable United States (US) market outlook, an analyst said. Add to that, Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 3.0 per cent is poised to encourage domestic spending and investment. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 13.47 points, or 0.83 per cent, to close at its intraday high of 1,634.17, compared to Tuesday’s close of 1,620.70. The benchmark index opened 3.71 points higher at 1,624.41 and subsequently hit a low of 1,623.52 in early trade before trending upwards toward the closing session. Market breadth was positive, with advancers trumping decliners 849 to 352, while 428 counters were unchanged, 765 untraded, and nine suspended. Turnover expanded to 3.39 billion units
Gold surged to a fresh record on Wednesday, climbing to $2,775.47 an ounce during early Asian trading, surpassing its previous peak as investors react to the latest US economic data and brace for potential market disruption ahead of the US presidential election.
The rise follows a report showing US job openings have dropped to their lowest level since early 2021, conflicting with earlier data that suggested strength in the US labor market. This shift led traders to scale back expectations of aggressive rate cuts by the Federal Reserve. Higher interest rates typically dampen the appeal of gold, but ongoing uncertainties are keeping demand strong.
Ahead of the Fed's next policy meeting on Nov. 6-7, markets are closely watching upcoming US inflation and payroll data for further clues on the central bank’s next moves. While policymakers are expected to cut rates by a quarter percentage point, economic resilience and labor market disruptions from recent hurricanes will also be key factors.
Gold has gained over 33% this year, supported by central-bank buying and investor demand for safe-haven assets amid geopolitical tensions in the Middle East and Ukraine. The tight race between Kamala Harris and Donald Trump in the US presidential election is adding further uncertainty, boosting gold’s status as a refuge for investors.
Analysts, including Suki Cooper of Standard Chartered, have noted that market positioning remains elevated ahead of the election and in anticipation of additional Fed rate cuts. A potential Trump victory is expected to bring market concerns about tariffs and associated inflationary pressures.
By 6:57 a.m. in Singapore, spot gold was steady at $2,775.06 an ounce, while the Bloomberg Dollar Spot Index dipped by 0.1%. Other precious metals like silver, palladium, and platinum remained steady, with silver holding above $34 an ounce.
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