Gold Price Correction May Not Mean Cheaper Gold for Malaysians
Gold's price has fallen to around US$4,100 an ounce, its lowest level since August 5, amid rising US Treasury yields and expectations of further Federal Reserve rate hikes.
Abdul Razak Gold House (M) Sdn Bhd managing director Mohd Razalie Abdul Rasul said the current decline reflected factors such as interest rates and oil prices.
He reminded Malaysians that international gold prices do not directly determine retail prices, and a falling price should prompt questions, not reactions.
Razalie emphasized that the correction should also be viewed in the context of gold's longer-term role as a store of value, which remains unchanged despite market fluctuations.
SPI Asset Management managing partner Stephen Innes noted that the main pressure on gold this week has been the rise in US real yields, reinforced by a more hawkish Federal Reserve backdrop.