Gold prices set to rise until year-end amid global economic uncertainty
An expert advised that the best time to buy gold was when the price experiences a temporary dip, as it tends to rebound significantly afterwards.
SHAH ALAM - Gold prices are projected to continue their upward trend until the end of the year, driven by several economic factors, including the decline in global commodity prices.
Economic expert from the Malaysia University of Science and Technology Professor Emeritus Dr Barjoyai Bardai said other contributing factors for the rise of gold prices included loose global monetary policies, fiscal policy uncertainty and geopolitical conditions.
"When commodity prices such as petroleum or crude oil decrease, gold prices will rise. This situation is also driven by the fundamental cycle, which has now entered a 30-year phase (for gold price increases).
"Although it is not an absolute cycle, it occurs based on surrounding effects.
"Therefore, gold will become a preferred choice and its demand will increase when other commodity prices decline.
"This situation is also a trend or strategy for investors to select the right investment to achieve their goals," he told Sinar.
He said this when asked about the gold price forecast and the influencing factors following the current upward trend.
Following a report on Saturday, 999 gold reached its peak price of the year at RM463 per gramme.
According to Public Gold’s website, this marked an increase of RM2 from Friday’s RM461 per gramme.
Universiti Sains Islam Malaysia senior lecturer in Economics and Banking Dr Mohd Faisol Ibrahim said there was a sentiment that gold prices were likely to keep rising and could potentially reach RM500 per gramme by the end of the year.
"The rise in gold prices is due to increasing demand for gold itself, not only among individuals but also involving financial institutions, companies and even countries.
"This is because gold is a durable asset, a hedge against inflation and safe for storage," he said.
Faisol referred to gold as a "safe-haven asset" that is recognised by governments worldwide.
He said the policies of former United States President Donald Trump, including the introduction of tariffs on the global economy had escalated trade wars with major world economies, creating economic uncertainty that contributed to the rise in gold prices.
When asked whether now was a good time to invest in gold, Faisol said it should not be seen as a primary option for quick profits.
"Gold investment is long-term, not short-term and the continuous rise in gold prices every year and month makes gold increasingly expensive in the market.
"The best time to buy gold is when an individual has the funds and capital to do so without referring to current gold prices, as gold itself has proven to increase significantly in value every year," he said.
He advised that the best time to buy gold was when the price experiences a temporary dip, as it tends to rebound significantly afterwards.
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