Gold Prices Drop Amid Interest Rate and Oil Price Volatility
Malaysians who own gold should focus on their financial goals and long-term strategy rather than reacting to weekly price swings, according to Abdul Razak Gold House Kuala Lumpur managing director Mohd Razalie Abdul Rasul.
The current decline in gold prices reflects movements in interest rates and oil prices. Spot gold fell to around US$4,150, its lowest level since August 5, before rebounding slightly to near US$4,100 by September 29.
Mohd Razalie noted that international prices do not directly set retail prices, as the ringgit, product type, and seller spreads also matter. Gold is down about 26% from its record high of US$5,597.23 on January 29.
Central banks bought a record 289 tonnes in the second quarter, but gold exchange-traded funds (ETFs) saw net selling of 45 tonnes. The World Gold Council reported that bar and coin investment was broadly steady from a year earlier at 307 tonnes in the quarter.