Gold Prices Continue to Fall to RM530 Per Gram
PETALING JAYA: Global gold prices declined during Asian trading on Wednesday as rising crude oil prices heightened inflation concerns ahead of the United States Federal Reserve’s (Fed) monetary policy decision.
As of late yesterday afternoon, Gold Futures fell 0.37 per cent to US$4,059.60 per ounce (RM532.07 per gram), compared with US$4,074.60 per ounce (RM534.77 per gram) at the close of Tuesday’s trading session.
Economic analyst Professor Emeritus Barjoyai Bardai said shifting expectations surrounding the US Federal Reserve’s monetary policy, coupled with profit-taking by investors following gold’s significant price gains, were among the main factors contributing to the decline in the precious metal’s value.
He said gold does not offer interest returns like deposits or bonds, making it less attractive when investors expect US interest rates to remain elevated for a longer period.
“The outlook for gold for the remainder of 2026 and throughout 2027 continues to be supported by geopolitical tensions, global economic uncertainty, central bank gold purchases and demand from investors seeking to diversify their assets.
“However, gold price gains could be limited if the US dollar continues to strengthen, real bond yields rise and expectations of persistently high interest rates remain,” he told Utusan Malaysia.
The outlook for gold should be assessed based on several scenarios, including a gradual recovery if inflationary pressures ease and the US dollar weakens, sideways movement accompanied by significant volatility, or a prolonged price correction if real bond yields continue to rise.
J.P. Morgan Global Research, in a forecast published in June 2026, projected that gold prices could reach approximately US$6,000 per ounce (RM787.55 per gram) towards the end of this year and US$6,300 per ounce (RM826.96 per gram) by the end of 2027.
However, Barjoyai said the projections were made before the latest market developments and should not be regarded as guaranteed price targets.
Regarding near-term price movements, Barjoyai said the US$4,000 per ounce (RM525.02 per gram) level represented an important psychological benchmark, while the range of US$3,900 per ounce (RM511.96 per gram) to US$3,950 per ounce (RM518.45 per gram) could be monitored if selling pressure persisted.
“Conversely, the range of US$4,100 per ounce (RM538.18 per gram) to US$4,200 per ounce (RM551.24 per gram) could be used to assess whether a price recovery is gaining momentum.
“These levels are indicative monitoring zones rather than confirmed support levels or price targets. They should therefore be reassessed based on actual price movements, bond yields and the US dollar following the Fed meeting,” he explained.
Meanwhile, he said the decline in gold prices could present opportunities for long-term investors to build their holdings, although lower prices do not necessarily indicate that the market has reached its lowest point.
He said investors could consider making purchases gradually rather than committing their entire capital at once to reduce the risk of buying while prices remain elevated or before the market has stabilised.
“Investors should also take into account the ringgit’s exchange rate against the US dollar, as gold returns in ringgit depend not only on international gold prices but are also influenced by movements in the local currency,” he said.
UTUSAN MALAYSIA