KUALA LUMPUR, Dec 12 (Bernama) -- Bursa Malaysia’s key index closed higher today on bargain hunting, in line with positive investor sentiment across regional markets, consolidating at its highest level in more than two months — a level last seen on Oct 2, 2025. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 12.42 points, or 0.76 per cent, to 1,637.81, compared with Thursday’s close of 1,625.39. The benchmark index opened 2.83 points lower at 1,622.56, thereafter edged down to an early low of 1,622.03, before staging an uptrend to an intraday high of 1,640.36 in late trading. Market breadth was positive, with gainers trouncing decliners at 743 versus 387. Another 530 counters were unchanged, 1,108 untraded, and 16 suspended. Turnover increased to 3.09 billion units worth RM2.46 billion from 2.99 billion units worth RM2.35 billion on Thursday. Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the FBM KLCI ended higher on continued...
Key Takeaway: Gold soared to record highs above US$4,000 an ounce, outperforming equities as global political turbulence and expectations of U.S. rate cuts reignited safe-haven demand.
Market Recap
| Asset / Index | Latest Move | Note |
|---|---|---|
| Gold Futures | +50% YTD | Record high above US$4,000/oz |
| S&P 500 (.SPX.US) | -0.4% | Snapped 7-day winning streak |
| Nasdaq Composite (.IXIC.US) | -0.7% | Tech weakness led declines |
| Dow Jones (.DJI.US) | -0.2% | Slight retreat |
| ORCL (Oracle) | -2.52% | AI profitability concerns |
| APP (Applovin) | +7.64% | Tech standout |
| IBM | +1.54% | Gains on cloud optimism |
| STX (Seagate) | -7.34% | Weak guidance |
| VZ (Verizon) | -0.10% | Flat trading |
Gold’s Record-Breaking Rally
Gold prices extended their strongest run since 1979, climbing above US$4,000 per ounce for the first time. The metal has now gained over 50% in 2025, supported by rising geopolitical uncertainty and declining real yields.
Analysts attribute the surge to multiple global flashpoints:
The U.S. government shutdown, now in its eighth day, with no resolution in sight.
France’s government collapse, intensifying European political risk.
The election of Sanae Takaichi as Japan’s new prime minister, sparking volatility in Asian markets.
Lower borrowing costs are also fueling the rally. As the Federal Reserve cuts rates, non-yielding assets like gold become relatively more attractive than bonds or cash.
Equity Markets Lose Momentum
While gold rallied, U.S. equities retreated:
The S&P 500 fell 0.4%, ending a seven-day streak of gains.
The Nasdaq Composite dropped 0.7%, weighed by tech weakness.
The Dow Jones Industrial Average slipped 0.2%.
The declines were driven by renewed skepticism over the profitability of AI infrastructure investments.
Oracle Faces Scrutiny Over AI Margins
A report from The Information cited internal Oracle documents showing the company lost US$100 million in the quarter ended August from Nvidia Blackwell chip rentals, raising questions about near-term AI returns.
Oracle shares fell 2.5%, though they later pared losses after a Fox Business report suggested the figures did not reflect actual financial performance.
Analysts warn that the market’s AI euphoria cuts both ways: stocks can rally sharply on optimism, but also drop just as quickly on doubts about monetization.
Outlook
Gold’s record surge underscores investor anxiety over policy uncertainty and global instability, while equity markets show signs of fatigue after a prolonged AI-driven rally.
Investment focus:
Gold and precious metals remain strong hedges amid volatility.
Tech valuations face renewed pressure as investors reassess earnings visibility from AI projects.
U.S. rate cuts could extend support for non-yielding safe havens through year-end.
Bottom line: The market is rotating from speculative growth to safety — and for now, gold is leading the pack.
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