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...
Key Takeaways
Gold and silver hit all-time highs on trade-war fears
US tariffs on European nations backed fears of wider conflict
Safe-haven buying boosts precious metals and defensive assets
Risk assets like stocks and the US dollar weaken amid uncertainty
Geopolitical risk is a key driver of current market sentiment
Record prices for gold and silver are underscoring rising global risk aversion as markets react to renewed trade tensions between the United States and Europe.
Safe-haven demand surged after US President Donald Trump announced plans to impose tariffs on eight European countries, including France, Germany, and the United Kingdom, over disagreements related to Greenland. The proposed 10% levy starting February 1, rising to 25% in June, has stoked fears of broader economic retaliation and possible trade conflict.
Gold prices climbed roughly 1.6% in early Asian trading, reaching a fresh record above US$4,680 per ounce and touching peaks near US$4,690/oz, while silver jumped over 3% to hit new highs above US$93/oz. Platinum and palladium also showed gains as investors sought shelter from market turmoil.
Underlying this shift is growing geopolitical uncertainty and trade risk, which has dampened confidence in risk assets like equities and the US dollar, and spiked interest in traditional stores of value. Analysts point to trade policy fears and eroding confidence in the dollar as key drivers of the precious metals rally.
The market impact is not limited to metals. Treasuries and safe-haven currencies like the yen and Swiss franc have strengthened as investors hedge against potential escalation in trade disputes. Meanwhile, global equities have struggled amid the risk-off sentiment triggered by tariff headlines.
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