KUALA LUMPUR, March 21 (Bernama) -- Bursa Malaysia’s benchmark index ended the day marginally higher supported by renewed buying interest in blue-chip stocks, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) gained 1.29 points to 1,505.45 from Thursday’s close of 1,504.16. The benchmark index opened 0.29 of-a-point lower at 1,503.87 and moved between 1,503.71 and 1,513.23 throughout the day. On the broader market, losers outpaced gainers 513 to 371 while 428 counters were unchanged, 1,125 untraded, and 29 suspended. Turnover rose to 3.43 billion units worth RM4.28 billion from 3.27 billion units worth RM2.64 billion on Thursday. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said buying interest was seen particularly within defensive sectors such as utilities, healthcare, and banking during the morning session.
Key Takeaways:
Gold's Winning Streak: Gold is set for its third consecutive week of gains, bolstered by rising geopolitical tensions, economic uncertainties, and expectations of U.S. interest rate cuts. After hitting a record high of US$3,057.21 per ounce on Thursday, gold is up by about 2% this week.
Fed Rate Cut Hopes: The Federal Reserve's recent decision to hold rates steady at 4.25%-4.5% has fueled expectations of two rate cuts by year-end. This dovish stance, combined with concerns about economic growth and inflationary pressures linked to trade policies, has strengthened gold’s appeal as a safe-haven asset.
Geopolitical Tensions: Alongside economic concerns, rising geopolitical instability, particularly in the Middle East, has driven further demand for gold. The conflict in Gaza, escalating tensions, and the broader global uncertainty have added to gold's allure as a protective asset.
Market Analyst Views: Market analyst Kyle Rodda noted that gold has strong fundamentals and sees little immediate risk of a correction, though a brief pullback to the US$3,000 level is possible for a “recharge” before continuing the uptrend.
Other Precious Metals: While gold is soaring, other precious metals like silver, platinum, and palladium are struggling, with all three set to post weekly losses. Silver dropped 0.8% to US$33.26, platinum lost 0.2% to US$983.10, and palladium fell 0.5% to US$947.78.
What’s Driving Gold’s Surge?
Gold's rise is primarily driven by its status as a non-yielding asset that thrives in low-interest-rate environments. The expectation of rate cuts, along with heightened geopolitical instability, particularly in the Middle East and amid ongoing tariff disputes, has made gold a go-to investment for those looking for stability.
With the Fed expected to lower rates and global tensions continuing to rise, gold could continue its upward momentum, with analysts predicting that more record highs may follow.
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