Gold prices in Malaysia registered a slight decline on Monday, falling 0.33% to RM461.68 per ounce, a drop of RM1.54 from the previous day, according to data from goldprice.org. Despite the modest pullback, market analysts remain optimistic about the precious metal’s long-term performance, pointing to broader macroeconomic trends and ongoing bullish momentum.
Over the last 30 days, gold has recorded a 3.97% gain, reflecting continued investor interest amid market volatility and geopolitical uncertainty. Year-on-year, the metal has surged an impressive 31.04%, driven by factors such as central bank buying, inflationary concerns, and currency fluctuations that have supported gold’s appeal as a safe-haven asset.
RHB Investment Bank Bhd (RHB Research) noted that COMEX gold futures closed at US$3,417.30 on Monday, after declining US$35.50 during the session. The drop, analysts said, reflects a temporary consolidation phase rather than a reversal of the ongoing uptrend.
“Despite the intraday weakness, gold remains above its 20-day and 50-day simple moving averages,” RHB Research stated in its latest technical analysis report. “This positioning typically indicates continued bullish sentiment in the market.”
The investment bank emphasized that it is maintaining its long positions on gold, highlighting key support levels at US$3,250 and US$3,150. These price points are considered critical thresholds that, if held, could help gold resume its upward trajectory.
Looking ahead, RHB Research projects a potential rebound in gold prices toward the US$3,500 level in the near term. Should momentum continue, the next resistance is expected at US$3,600. However, the bank also cautioned investors to be prepared for volatility and advised placing a stop-loss at US$3,150 to manage downside risk effectively.
Gold has benefited from a range of global economic conditions in recent months. Persistent inflation in major economies, dovish monetary policy expectations, and demand from both institutional and retail investors have all contributed to gold’s sustained rally. Central banks, particularly in emerging markets, have also played a significant role in driving demand, as they seek to diversify their reserves away from the U.S. dollar.
“While short-term fluctuations are expected, the long-term fundamentals for gold remain solid,” said a market strategist at RHB Research. “With continued economic uncertainty, geopolitical tensions, and shifts in monetary policy, we believe gold will remain a key asset in diversified investment portfolios.”
Market participants are now closely watching signals from the U.S. Federal Reserve, as upcoming interest rate decisions could influence the direction of gold prices. A more accommodative stance by the Fed could provide additional support for gold, as lower interest rates typically reduce the opportunity cost of holding non-yielding assets.
In Malaysia, local investors are also responding to the weakening ringgit and global inflationary pressures, factors that have contributed to the surge in gold investment activity. The domestic gold retail sector has seen strong demand in recent months, with many Malaysians turning to gold as a hedge against currency depreciation and rising living costs.
As gold continues to trade within a strong technical framework, analysts recommend a cautious but optimistic outlook. While short-term corrections may occur, the broader trend appears resilient, underpinned by strong fundamentals and investor demand across global markets.
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