KUALA LUMPUR, March 10 (Bernama) -- Bursa Malaysia rebounded to end higher today with the benchmark FBM KLCI reclaiming the 1,700 psychological level, supported by improved global sentiment after US President Donald Trump signalled a potential de-escalation of the Iran conflict, alongside Malaysia’s stronger Industrial Production Index (IPI) data. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) increased 27.51 points, or 1.64 per cent, to 1,701.68 from yesterday’s close of 1,674.17. The benchmark index opened 10.68 points higher at 1,684.85, its lowest point today, and hit a high of 1,703.61 in the late afternoon session. Market breadth was positive, with gainers thumping losers 929 to 382. A total of 361 counters were unchanged, 982 untraded and 19 suspended. Turnover declined to 3.60 billion units worth RM3.75 billion from yesterday’s 5.52 billion units worth RM5.87 billion.
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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