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KUALA LUMPUR: Reports of a Covid-19 vaccine, which is expected to be available in Malaysia early next year, are said to be a major factor in the sharp drop in the price of gold recently.
Gold investment consultant Syukor Hashim said the price of the precious commodity rose 37% from early January to August, when it used to exceed RM 300 per gram, but has fallen to RM 256 per gram today.
“The price rose due to the threat of Covid-19, which has affected the world economy and indirectly caused investors to choose gold as a safe asset.
“However, following the news of the discovery of a Covid-19 vaccine, which led economists and investors to predict that the world economy will recover, gold is considered to have lost its attractiveness as a safe asset,” he told Bernama.
People have been reported to have flocked to jewelry stores to seize the opportunity of falling prices and have not followed the Covid-19 SOPs.
When asked when the price of gold is expected to rise again, Syukor said it is difficult to predict “as the price is influenced by current developments.”
“For example, if there is ‘drama’ in the US presidential transition between Joe Biden and Donald Trump, then the price can go up again. Also, news about Iran claiming that its nuclear scientist was assassinated by Israel.
“In other words, the increase in gold prices is not only influenced by Covid-19, but by many other factors, but for this year, it is mainly the pandemic,” he said.
Meanwhile, Bernama said that a survey of jewelry stores here found that there were fewer customers yesterday than on the weekend.
Munirah Aqilah Mohd Zahari, a gold merchant at Keramat Urban Transformation Center, said the number of customers at his shop doubled on Saturday and Sunday.
Most customers were taking advantage of the low price to exchange old jewelry for new, while some were looking for items such as investments and accessories.
Another trader, Nik Ahmad Tarmizi Nik Hassan, said that many clients who had cash in hand due to the loan default were looking for gold items to invest.
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