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.
Spot gold hit a new record:
US$3,167.57/oz on Thursday
+19% year-to-date | +71% since end-2022
Key Takeaways:
Trump’s Return Drives Structural De-Dollarisation
Central banks are shifting reserves away from the US dollar and Treasuries due to:
Tariff escalation and trade wars
Unpredictable foreign policy (Ukraine, alliances)
Concerns over long-term USD stability
Quote: “Uncertainty about US economic policy will remain for years to come.” – Michael Widmer, BofA
Central Bank Buying Already Surging
Q4 2024: Purchases up 54% year-on-year to 333 tonnes (World Gold Council)
Emerging market central banks currently hold around 10% of reserves in gold; BofA suggests a target of 30%, implying:
11,000 tonnes of potential future demand
Demand Outlook: Stronger and Stealthier
2025 may see record-high central bank demand in decades
Only 34% of estimated 2024 buying reported to IMF — suggesting undisclosed accumulation to avoid political friction with US
Quote: “Trump has threatened tariffs on countries seen to be actively de-dollarising.”
Strategic Implications for Investors
Gold remains a favored hedge amid:
Currency risk
Geopolitical instability
Trade fragmentation
Inflationary pass-through from tariffs
Central bank demand (23% of global consumption) adds a floor under prices — less price sensitivity than in past cycles due to geopolitical risk premiums
Key Stats
| Metric | Value |
|---|---|
| Spot Gold (latest) | $3,167.57/oz |
| 2025 YTD Gain | +19% |
| Gain Since 2022 | +71% |
| Q4 2024 CB Gold Buying | +54% YoY |
| Largest Buyers (Jan-Feb) | Poland, China |
| % of CB Buying Disclosed to IMF (2024) | 34% |
Bottom Line
Gold is increasingly a geopolitical hedge. As US policies under Trump fuel global uncertainty, central banks are not just buying gold — they are rethinking the architecture of global reserves. Investors should treat this gold rally not as cyclical, but structural.
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