KUALA LUMPUR, Jan 23 (Bernama) -- Bursa Malaysia’s benchmark index recouped earlier losses to settle higher, maintaining a more than six-year high, buoyed by continued buying interest in technology stocks, while the strengthening of the ringgit against the US dollar further lifted investor sentiment. At 2.27 pm today, the local currency strengthened to 3.9992 versus the greenback, its strongest level in more than seven years. It was last seen at this level on June 18, 2018, at 3.9960/9990. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 2.85 points or 0.17 per cent to 1,719.99 from yesterday’s close of 1,717.14. The index surpassed its previous peak of 1,719.00 recorded on Feb 26, 2019. The barometer index opened 1.30 points lower at 1,715.84 and moved between an intraday low of 1,711.89 in early trade and a high of 1,723.41 in late afternoon before slipping slightly toward the close. However, market breadth was negative with decl...
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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