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Gold poised to hit yearly highs amid rate cut hopes, geopolitical risks
🇲🇾 Malaysia /Elections & Politics

Gold poised to hit yearly highs amid rate cut hopes, geopolitical risks

From Utusan Malaysia · () Malay

Translated from Malay, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Gold prices are expected to reach new yearly highs within the next year, driven by anticipated interest rate cuts in the US, geopolitical instability, and consistent demand from central banks and investors.
  • The price of gold has been rising, trading around $4,400 per ounce, with a recent month-long increase of 10.96% and an all-time high of $5,594 per ounce in January.
  • While the long-term outlook for gold remains positive, investors should prepare for short-term volatility due to potential factors like a strengthening US dollar or profit-taking.

Gold prices are poised to potentially reclaim their highest levels in a year, fueled by expectations of US interest rate reductions, ongoing geopolitical uncertainties, and sustained demand from both central banks and investors. The precious metal has shown a consistent upward trend, recently trading around $4,400 per ounce, with its continuous contract price climbing to $4,455.80 per ounce.

Gold has supportive factors to remain at high levels in the near future and has the potential to increase further and reach previous highs within a year.

— Nik Mohd Haniff Nik HamidNik Mohd Haniff Nik Hamid, a gold trader and Managing Director of Merchant Nine Sdn. Bhd., commented on the future price of gold.

This surge follows a significant 10.96% increase over the past month, building on an all-time high of $5,594 per ounce reached in January. Experts suggest that gold possesses strong supportive factors for maintaining high levels in the near future, with the potential to surpass previous records within the next year. However, the path of gold prices is not always linear; corrections are considered normal after strong rallies.

After a strong rally, price correction is something normal.

— Nik Mohd Haniff Nik HamidNik Mohd Haniff Nik Hamid explained the typical market behavior following a price increase in gold.

Factors that could trigger such corrections include a strengthening US dollar, shifts in interest rate expectations, a significant resurgence in inflation, stabilization of geopolitical situations, or investors engaging in profit-taking activities. Therefore, while the long-term prospects remain favorable, investors must remain vigilant about short-term fluctuations. Gold is still considered a prudent addition to investment portfolios for hedging and diversification, but investors are advised against chasing rapidly rising prices.

So even though the long-term prospect still has support, investors need to be prepared for uncertainty in the short term.

— Nik Mohd Haniff Nik HamidNik Mohd Haniff Nik Hamid advised investors on managing expectations regarding gold price movements.

The sustained demand from central banks is a key driver of the long-term trend in gold prices. Global gold demand in the first half of 2026 reached 2,522 tons, a 2% increase from the previous year, with demand value hitting record highs. This indicates that demand is not solely driven by short-term factors, reinforcing gold's role as a stable asset.

The trend of gold still has a positive basis, but the rapid increase means the risk of correction is also increasing.

— Prof. Emeritus Dr. Barjoyai BardaiProf. Emeritus Dr. Barjoyai Bardai, an economist from Universiti Sains dan Teknologi Malaysia (MUST), discussed the current gold market dynamics.
DistantNews Editorial

Originally published by Utusan Malaysia in Malay. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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