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.
Key Takeaway
Gold is trading just shy of its record peak near $3,600/oz, supported by weak U.S. jobs data that strengthened bets on Federal Reserve rate cuts. Lower yields and safe-haven demand continue to underpin bullion, with analysts warning that Fed independence concerns could push prices even higher.
What’s Driving the Rally
Weak U.S. Jobs Data: August payrolls showed hiring slowed sharply and unemployment hit its highest since 2021. Traders are now pricing in nearly three Fed rate cuts this year.
Rate Cut Optimism: Lower interest rates reduce the opportunity cost of holding gold, boosting its appeal.
Haven Demand: Rising geopolitical risks and Trump’s escalating attacks on the Fed are keeping investors defensive.
China Buying: The People’s Bank of China raised gold holdings for the 10th straight month, diversifying reserves away from the U.S. dollar.
Policy & Political Factors
Fed Independence at Risk? Trump has vowed to secure a majority on the Fed board and replace Governor Lisa Cook with a dovish official if courts allow. Goldman Sachs warns that if Fed independence is undermined, gold could surge toward $5,000/oz as investors rotate out of Treasuries.
Tariff Exemption: Trump’s administration exempted gold bullion from tariffs, reversing earlier confusion and adding a tailwind for the market.
Market Snapshot
Spot Gold: $3,592.91/oz (+0.2%)
Silver: Lower
Platinum: Lower
Palladium: Flat
Bloomberg Dollar Spot Index: +0.1%
Investor Take: Gold is holding firm near record highs with structural support from central bank demand, weak U.S. data, and policy risks. With rate cuts priced in and Fed independence under political fire, bullion remains one of the strongest hedges in the current macro environment.
Comments
Post a Comment