Gold-Related Stocks Surge on Bursa Malaysia Amid Rising Economic Concerns

Gold-related stocks on Bursa Malaysia surged on March 14 due to increased safe haven demand amid US economic concerns. Notable gains were observed in Tomei Consolidated Bhd, Poh Kong Holdings Bhd, and Aumas Resources Bhd. Predictions indicate gold prices may soon exceed US$3,000, with heightened demand linked to geopolitical tensions and trade issues under the Trump administration.

On March 14, gold-related stocks on Bursa Malaysia experienced significant gains as investor demand for the precious metal increased amidst rising worries regarding the US economy. Notably, Tomei Consolidated Bhd achieved an 8% increase to RM1.70, while Poh Kong Holdings Bhd rose nearly 4% to RM1.05. Additionally, Aumas Resources Bhd, which operates a gold mine in Sabah, advanced by 8% to 81 sen. These three stocks are not under observation by institutional analysts.

Moreover, the TradePlus Shariah Gold Tracker, an exchange-traded fund that mirrors gold’s performance, saw an increase of 3.5% to RM4.15 on the same day. Factors contributing to gold’s soaring prices include geopolitical tensions and ongoing trade disputes between the US and its major trade partners, raising concerns about the economic stability of the largest economy in the world. Current forecasts suggest gold prices may reach upwards of US$3,000 (approximately RM13,337) per ounce.

Hong Kok Wah, the head of trading at Go Capital Growth Sdn Bhd, indicated that gold prices are poised to surpass the US$3,000 mark imminently, with potential heights of US$3,200 by the close of the year. The demand for gold has escalated since the beginning of the Trump administration, which has led to a significant short squeeze in the bullion market as traders aimed to transport gold from the Bank of England to the US to evade tariffs imposed by the Trump administration.

As per reports, the Bank of England holds gold reserves both for the UK and for foreign banks and their respective central banks. United Overseas Bank noted that the uncertainty surrounding the trade policies of the Trump administration is likely to further enhance the flow of gold bullion into the US, thereby exacerbating the existing global short squeeze in gold.

In summary, the surge in gold-related counters on Bursa Malaysia reflects heightened investor demand for gold as a safe haven amid economic uncertainties in the US. With significant increases noted in various stocks and predictions of gold prices exceeding US$3,000, market analysts anticipate continued volatility in the gold market, driven by geopolitical and economic factors.

Original Source: theedgemalaysia.com