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...
Gold prices rose on Friday, extending their monthly winning streak as bargain hunters stepped in and the US Federal Reserve’s rate cut boosted demand for non-yielding assets, even as a stronger dollar capped gains.
Market Snapshot
Spot gold: US$4,034/oz (+0.3%)
US gold futures (Dec): US$3,955/oz (–1.1%)
Monthly gain: +4.5% (third straight)
The rally puts gold on track for its best three-month stretch this year, supported by lower yields and sustained safe-haven demand amid geopolitical and trade uncertainties.
Fed Policy and Rate Outlook
The Fed cut its benchmark rate by 25 basis points this week to a range of 3.75%–4.00%, marking its second cut of 2025. While the move supported bullion, Fed Chair Jerome Powell’s cautious remarks tempered expectations of another reduction in December.
According to the CME FedWatch Tool, traders now see a 74.8% chance of a further 25 bps cut in December — down from 91.1% a week earlier.
Lower rates typically enhance gold’s appeal by reducing the opportunity cost of holding non-interest-bearing assets.
Demand Trends and Dollar Dynamics
Gold’s upside was limited as the US dollar index held near a three-month high, making bullion more expensive for non-dollar investors.
Still, physical and investment demand remain strong:
Global gold demand: +3% YoY to 1,313 tonnes in Q3 — the highest on record, driven by ETF inflows and central bank purchases (World Gold Council).
SPDR Gold Trust holdings: +0.42% to 1,040.35 tonnes on Thursday.
Trade Developments Add Support
Market sentiment was also lifted by reports of a tentative US–China trade deal. President Donald Trump said both sides agreed to reduce tariffs, with China pledging action on fentanyl exports and resuming US soybean purchases.
Other Precious Metals
Silver: US$48.92/oz (flat)
Platinum: US$1,613.50/oz (+0.2%)
Palladium: US$1,474.52/oz (+2.1%)
Investor Takeaway
Gold continues to benefit from macro uncertainty and easing monetary policy, with price action showing resilience above the US$4,000 mark.
While a firmer dollar may limit near-term gains, strong ETF inflows and physical demand point to steady institutional interest, suggesting gold could maintain its bullish bias into year-end if the Fed signals another rate cut.
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