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 has reclaimed the spotlight — and this time, it’s more than just a market story. The metal’s surge above US$4,000 an ounce marks a profound shift in how investors perceive safety, stability, and the global financial order.
A Flight from Faith
Traditionally, investors facing economic or political chaos turn to the US dollar and Treasury bonds for refuge. But in 2025, that confidence has cracked. With trade wars, tariff shocks, inflation, and political interference shaking the foundations of monetary policy, gold has become the asset of choice — a symbol of safety in a world where fiat trust is fading.
The Debasement Trade
The US dollar has suffered its sharpest six-month drop in half a century, as investors bet against its long-term strength. This growing distrust has fueled what analysts call the “debasement trade” — a move away from currencies that governments can print and control, toward tangible assets like gold.
Gold’s appeal lies in its independence: no counterparty risk, no political agenda, no central bank influence. It’s simply value that stands alone.
Central Banks Are Quietly Changing the Game
After the West froze Russia’s reserves in 2022, many countries realized their holdings weren’t as secure as they thought. Since then, central banks — especially in China, India, Poland, and the Czech Republic — have been aggressively buying gold, adding roughly 1,000 tonnes a year.
China’s central bank in particular is leading the charge, reducing US Treasury holdings and boosting gold reserves as part of its strategy to reduce dollar dependency.
The Dollar’s Dimming Dominance
The dollar once made up nearly three-quarters of global reserves in 2000. That share has been steadily shrinking.
As Trump’s tariffs, sanctions, and political tension reshape global trade, more nations are questioning why the world’s transactions must still be settled in dollars. It’s not yet a collapse — but the cracks are visible.
Beyond Gold: Silver, Platinum, and Digital Havens
Gold’s rise has pulled other assets higher too. Silver and platinum are seeing their strongest rallies in decades, supported by industrial demand from clean energy and technology sectors.
Gold-backed ETFs are witnessing record inflows, as investors who can’t access physical gold pile in through financial markets. Even Bitcoin is back in the conversation — a digital echo of gold’s safe-haven allure.
What Could Cool the Rush
A ceasefire in Ukraine or a de-escalation of US-China tariffs could ease market anxiety and bring prices down. But with global alliances shifting and uncertainty deepening, few expect a quick reversal.
Analysts at Goldman Sachs and Deutsche Bank say the long-term trend still favors gold — the old safe haven proving it can thrive in a new era of instability.
The Bigger Picture
Gold’s record rally isn’t just about inflation or interest rates. It’s about trust — or rather, the lack of it.
As confidence in governments, central banks, and currencies erodes, gold is reclaiming its ancient role: the asset people turn to when nothing else feels certain.
Comments
Post a Comment