Gold is on an upward trajectory, and experts predict this trend will persist until the end of the year. A combination of economic factors, including declining global commodity prices and increasing demand for safe-haven assets, is driving gold’s sustained rise. Investors are paying close attention as gold solidifies its position as a valuable asset in times of economic uncertainty.
Professor Emeritus Dr Barjoyai Bardai from the Malaysia University of Science and Technology attributes the price increase to a fundamental 30-year cycle in gold markets. While not an absolute rule, historical patterns indicate that gold prices tend to rise as other commodities, such as crude oil, decline. This inverse relationship makes gold a preferred asset, attracting higher demand when other investments appear less favourable. Investors seeking stability and growth are strategically turning to gold to achieve their financial objectives.
The recent surge in gold prices reflects this trend. Over the weekend, 999 gold peaked at RM463 per gramme, up from RM461 the previous day, according to Public Gold. With sustained demand, Universiti Sains Islam Malaysia senior lecturer in Economics and Banking Dr Mohd Faisol Ibrahim suggests that prices could climb further, potentially reaching RM500 per gramme by year-end.
Gold’s appeal extends beyond individual investors. Financial institutions, corporations, and even governments recognise its durability and reliability as a hedge against inflation. Economic uncertainties, exacerbated by past geopolitical policies and trade tensions, have reinforced gold’s status as a safe-haven asset. With inflationary pressures and global economic shifts, investors see gold as a crucial store of value.
Despite the bullish outlook, Faisol cautions against viewing gold as a quick-profit investment. Instead, he emphasises gold’s strength as a long-term asset, appreciating in value over time. While price fluctuations occur, history shows that gold consistently rebounds and appreciates, making it an attractive addition to diversified portfolios.
For those considering an entry into the gold market, Faisol advises purchasing during temporary price dips. The key to maximising returns lies in holding gold over extended periods, capitalising on its historically proven upward momentum.
Gold’s strong performance underlines its enduring appeal. As economic cycles shift and investors seek stability, gold remains a trusted asset. With market dynamics favouring its continued growth, those positioned wisely stand to benefit from its resilience and value appreciation.
London-listed company KEFI Gold and Copper plc (LON:KEFI) is an exploration and development company focused on gold and copper deposits in the highly prospective Arabian-Nubian Shield. The Company operates in Ethiopia and Saudi Arabia with projects including Tulu Kapi project, Jibal Qutman EL and Hawiah.
