Gold Ends The Week On A Softer Note After Hitting Record Highs
Gold prices took investors on a volatile ride from Oct 20 to 24, surging to record levels early in the week before easing as profit-taking and a stronger US dollar capped gain.
In Malaysia, the precious metal touched a new peak of RM18,475 per oz for 24-karat gold on Oct 20, marking the year’s highest level. The rally was fuelled by robust global demand as investors flocked to safe-haven assets amid ongoing geopolitical and inflation concerns.
According to Bank of America Global Research, gold funds attracted US$8.7 billion in inflows in the week leading up to Oct 22, pushing spot prices to above US$4,381 per oz, a fresh milestone for the metal.
However, by Oct 24, prices had cooled off, settling around RM17,365 per oz locally, with 24-karat gold averaging RM558.38 per gram, according to market data.
The week’s gold movements were driven by several key factors such as safe-haven demand, interest rate expectations, stronger US dollar and profit-taking.
Moving forward, market watchers remain divided on gold’s next move. A dovish shift by major central banks or renewed inflation concerns could reignite buying interest. Conversely, a sustained dollar rebound may limit upside momentum in the near term.
For now, the metal remains firmly supported by risk aversion but traders are treading cautiously, with attention turning to upcoming economic data and policy signals from the US Federal Reserve.
