KUALA LUMPUR, Jan 28 (Bernama) -- Bursa Malaysia snapped its five-day winning streak to close lower on Wednesday, as investors took profit following a cumulative gain of 4.25 per cent over the past five sessions, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 14.76 points or 0.83 per cent to 1,756.49 from Tuesday’s close of 1,771.25. The market bellwether opened 1.46 points lower at 1,769.79, marking the day’s high, and hit a low of 1,750.05 during the mid-afternoon session. Market breadth was negative with losers trouncing gainers 876 to 384, while 525 counters were unchanged, 964 untraded and 94 suspended. Turnover improved to 3.65 billion units worth RM4.41 billion from Tuesday's 3.58 billion units worth RM4.46 billion.
Gold prices surged to an all-time high above US$5,200 an ounce, driven by a sharp drop in the US dollar, rising geopolitical tensions, and growing bets on a more dovish Federal Reserve.
Quick Summary
Gold hits record above US$5,200 on safe-haven demand
Trump dismisses dollar weakness, pressuring FX markets
Bets on a dovish Fed support bullion prices
Silver outperforms, up over 50% this year
What’s Driving the Gold Rally
US dollar weakness after President Donald Trump said he was unconcerned about the currency’s decline
Flight from sovereign bonds and currencies, including US Treasuries and Japanese government bonds
Geopolitical risks and renewed concerns over Fed independence
Rising expectations of lower interest rates, which benefit non-yielding assets like gold
Gold has now gained about 20% year-to-date, breaking above US$5,000 for the first time this week, while silver has surged more than 50% over the same period.
Trump’s Dollar Comments Add Fuel
Trump told reporters the dollar was “doing great” and said currency fluctuations were normal — comments that came as the greenback slid to its weakest level in nearly four years. A key dollar gauge fell 1.1% in a single session, its biggest daily drop since April.
Bonds, FX and Geopolitics Amplify Safe-Haven Demand
A selloff in Japanese bonds has raised fears over heavy fiscal spending
Speculation of US intervention to support the yen has pressured the dollar
Trump administration threats involving Greenland, Venezuela, and new tariffs have unsettled global markets
Together, these factors have pushed investors toward precious metals.
Fed Bets Boost Bullion
Bond traders are increasing bets on a dovish Fed shift, amid speculation that Rick Rieder of BlackRock could replace Jerome Powell as Fed chair.
Lower rates reduce the opportunity cost of holding gold, strengthening its appeal.
According to Standard Chartered plc, expectations of a less independent Fed and rising geopolitical risk are accelerating gold allocations, especially among retail investors.
Latest Prices (Asia Morning)
Gold: US$5,190.17 (after peaking at US$5,202.51)
Silver: US$113.14
Platinum & Palladium: Higher
Bloomberg Dollar Spot Index: Down 1.4% for the week
Bottom Line
Gold is benefiting from a rare mix of dollar weakness, policy uncertainty, and geopolitical stress.
As long as markets price in lower rates and political risk, the upside momentum for precious metals remains intact.
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