KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Key Takeaway: Gold surged to a fresh record of US$3,759.02 per ounce before steadying, fueled by bets on further US interest rate cuts and a softer dollar, with investors awaiting Fed Chair Jerome Powell’s speech for policy signals.
Gold prices hovered near record highs on Tuesday, underpinned by expectations of more US Federal Reserve rate cuts and a weaker greenback. Investors are closely watching Fed Chair Jerome Powell’s remarkslater today for clues on the central bank’s next moves.
Spot gold held at US$3,743.39 per ounce as of 0238 GMT after touching an all-time peak of US$3,759.02 earlier in the session. US gold futures for December delivery added 0.1% to US$3,779.50.
The US dollar index slipped 0.1%, making dollar-denominated bullion more attractive to overseas buyers. Analysts see the near-term trend as bullish, though a short-term pullback is possible. OANDA’s Kelvin Wong noted that key support levels to watch are around US$3,710 and US$3,690.
Last week, the Fed cut rates by 25 basis points, lowering the policy rate to 4.00%-4.25% amid signs of a softening labor market, while warning about sticky inflation. The CME FedWatch tool now shows a 90% chance of another quarter-point cut in October and a 75% probability of another move in December.
The debate within the Fed remains divided. Stephen Miran, a newly appointed governor, argued on Monday for more aggressive easing to protect jobs, while three other policymakers stressed caution over inflation risks. Powell’s speech at 1635 GMT will be closely parsed for any policy leanings.
Broader market sentiment remains supportive. Analysts at ANZ highlighted that “slowing economic growth, higher inflation, the shifting geopolitical landscape and a weaker USD” should keep gold demand elevated. They also noted that silver prices are likely to track bullion as long as gold remains strong.
Elsewhere in precious metals, silver slipped 0.9% to US$43.67 per ounce, though it remains near a 14-year high. Platinum fell 0.3% to US$1,412.80, while palladium inched down 0.2% to US$1,176.44.
Bottom Line: With gold sitting at record highs and Fed rate cuts on the horizon, investor demand looks set to stay strong. Powell’s comments later today could either reinforce the rally or spark the pullback traders are watching for.
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