KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Gold’s rally is far from over. Goldman Sachs has raised its end-2026 gold price forecast by US$500 to US$5,400 per ounce, citing sustained demand from private investors and emerging-market central banks seeking diversification.
What’s Driving the Upgrade
The bank said gold demand linked to global policy uncertainty and reserve diversification is proving more durable than expected.
Key point: Goldman now assumes diversification-driven buyers will not unwind their positions in 2026, effectively lifting the baseline for gold prices.
Spot gold recently touched a record high of US$4,887.82/oz, and the metal is already up more than 11% in 2026, after a 64% surge in 2025.
Central Banks and ETFs Remain Supportive
Goldman expects:
Emerging-market central banks to continue buying gold, averaging ~60 tonnes in 2026
Western gold ETF holdings to rise as monetary policy eases
The bank also expects the Federal Reserve to cut interest rates by 50 basis points in 2026, a backdrop that typically supports non-yielding assets like gold.
What Could Slow the Rally
While bullish overall, Goldman flagged one key risk:
A sharp drop in global policy uncertainty could trigger liquidation of macro hedges, weighing on gold prices
Still, the bank sees this as a downside risk rather than a base case.
Bottom Line
2026-end gold target raised to US$5,400/oz
Diversification demand is structural, not tactical
Central banks and potential Fed rate cuts remain powerful tailwinds
Gold’s role as a core hedge against policy and geopolitical risk appears more entrenched than ever.
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