KUALA LUMPUR, Aug 8 – Gold is expected to increase by a further record-breaking 10 per cent in September from the current level of US$3,370 per ounce, driven by expectations that the United States (US) Federal Reserve (Fed) will lower its interest rates.
Malaysia Gold Association (MGA) president Datuk Seri Louis Ng is confident that the precious metal is poised to rise further as the narrowing of the interest rate differential between the US dollar and the Malaysian ringgit is expected to spur demand.
Gold is currently hovering at US$3,370, up by 28 per cent from US$2,630 at the beginning of the year, largely due to geopolitical tensions and market uncertainty, he told Bernama after appearing on Bernama TV’s “The Nation” programme yesterday.
“This is a record-breaking performance. In the first seven months of the year, we’ve seen a 28 per cent appreciation in gold prices.
“If you look at the price pattern, the prices have been consolidating in the past three months, and I foresee a breakout happening after the Fed cuts interest rates, which is expected to happen around September,” said Ng, who is also the executive chairman of Public Gold Marketing Sdn Bhd.
Public Gold is one of Malaysia’s leading gold trading companies.
When asked whether the Russia-Ukraine war, the conflict between the US and Israel against Iran and the US-China trade war have been impacting gold demand as a safe-haven investment asset, Ng said the momentum from the wars is “already slowing down.”
As such, he said the only major factor that could contribute to a significant surge in gold prices is the expected interest rate cut by the Fed.
“Based on that, the price after September could go up another 10 per cent, about US$300 to US$400 per ounce, from the current price. That’s very possible,” he said.
