KUALA LUMPUR, May 21 (Bernama) -- Bursa Malaysia ended at its intraday low on Thursday as investor sentiment remained cautious amid ongoing foreign outflows, although the recent weakness may present bargain-hunting opportunities in fundamentally sound blue-chip counters. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 9.33 points, or 0.54 per cent, to 1,708.36, from yesterday’s close of 1,717.69. The benchmark index, which opened 3.74 points higher at 1,721.43, hit an intraday high of 1,722.50 in early trade before losing momentum for the rest of the day. Market breadth was negative, with losers outpacing gainers 656 to 508, while 565 counters were unchanged, 989 untraded and 32 suspended. Turnover fell to 3.49 billion units worth RM3.70 billion compared with 4.15 billion units worth RM4.29 billion on Wednesday.
Gold and silver surged to fresh record highs as investors rushed into safe-haven assets, driven by escalating geopolitical tensions, a weaker US dollar, and expectations of further US interest rate cuts.
What’s Driving the Rally
Geopolitical risk spikes, particularly renewed US–Iran tensions
US dollar weakness, making precious metals cheaper for global buyers
Expectations of Fed rate cuts, with markets eyeing June as the next move
Strong ETF inflows, signalling institutional demand
Spot gold climbed 2.1% to US$5,513, after touching a peak near US$5,595, marking nine consecutive sessions of record highs. The metal is now up 28% for January.
Silver followed closely, breaking above US$120 and extending its year-to-date gain to nearly 64%.
Geopolitics Back in Focus
US President Donald Trump urged Iran to negotiate a nuclear deal, warning of stronger retaliation than previous US strikes on Iranian nuclear facilities.
Tehran responded with threats of retaliation against the US, Israel, and allies — pushing investors further toward safe havens.
Fed, Dollar and Rate Expectations
The Federal Reserve held rates steady, but markets are increasingly pricing in:
A new Fed chair appointment by Trump
Rate cuts starting as early as June
Meanwhile, the US dollar remains near a four-year low, amplifying gold’s appeal.
ETF and Institutional Demand
The SPDR Gold Trust, the world’s largest gold-backed ETF, reported holdings rising to 35 million ounces, the highest since May 2022 — a clear sign of institutional accumulation.
Silver’s Momentum Trade
Spot silver rose to a record US$120.45 before easing slightly. Analysts point to:
Persistent supply deficits
Industrial demand
Investors rotating out of gold into silver
Some market watchers now see US$130 as the next potential milestone.
Other Precious Metals
Platinum: +1.4% to US$2,735, after hitting a record earlier this week
Palladium: -1% to US$2,053
Bottom Line
Gold’s “perfect storm” remains firmly intact.
With geopolitics heating up, the dollar under pressure, and rate cuts looming, precious metals continue to act as the market’s ultimate hedge. Some analysts now see US$6,000–US$7,000 gold as plausible within 2026.
Quick Summary
Gold nears US$5,600, up 28% in January
Silver breaks US$120, up nearly 64% YTD
Geopolitical risks and weak USD fuel demand
ETF inflows confirm institutional buying
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