Gold Shines As Safe Haven Amid Global Uncertainty - Malaysia Gold Association

By Rosemarie Khoo Mohd Sani

KUALA LUMPUR, July 11 (Bernama) -- Global demand for gold bars as a secure investment is on the rise, particularly among central banks and high-net-worth individuals, according to the Malaysia Gold Association.

Its president, Datuk Wira Louis Ng, said central banks in countries such as China, Poland, and Kazakhstan are actively increasing their gold reserves to diversify their national holdings. “While the demand for investment-grade gold is surging, we’re seeing a decline in the gold jewellery segment across Asia, including traditionally strong markets like China and India,” he told Bernama.

Ng noted that the international gold price has been holding steady at around US$3,300 per ounce, reflecting a 24 per cent increase since the start of the year. “This price level is being supported by strong institutional demand, particularly from global fund managers acquiring gold through exchange-traded funds (ETFs) on behalf of high-value clients,” he said.

He attributed this trend to widespread geopolitical tensions - including conflicts in the Middle East, the ongoing war in Ukraine, and trade frictions between the United States and China - which have heightened investor caution. “Given these uncertainties, gold continues to be viewed as a reliable store of value. Central banks, institutional investors, and even retail investors are responding accordingly,” he noted.

However, Ng acknowledged that retail demand for gold jewellery is facing headwinds. “The retail jewellery market is on a downtrend and not seeing the same momentum as investment-grade gold,” he said.

Looking ahead, Ng expects the gold market to remain stable in the near term. “We anticipate prices to continue consolidating around the US$3,300 level, as investors keep a close eye on ongoing global tensions and economic developments,” he added.

-- BERNAMA