Local Gold Prices Expected To Remain Stable Until Year-end
By Nur Athirah Mohd Shaharuddin
KUALA LUMPUR, Nov 2 (Bernama) -- Local gold prices are expected to remain stable or slightly increase from current levels until the end of this year, amid geopolitical uncertainties and changes in the global economic structure, said an economist.
Universiti Sains dan Teknologi Malaysia Emeritus Professor Dr Barjoyai Bardai said the market is expected to have a clearer indication of the precious metal’s price movements after the end of 2026.
He said this during the Fokus 15 programme titled ‘Gold Prices Drop: Opportunity or Risk?’ aired on Bernama TV today.
On Friday, gold futures on Bursa Malaysia Derivatives closed lower, tracking weaker performance on the New York Commodity Exchange (COMEX).
At the close of trading, the October 2026 contract fell to US$3,981.1 per troy ounce from US$4,024.9 per troy ounce on Thursday, while the November 2026 contract dropped to US$4,003.0 per troy ounce from US$4,040.5 per troy ounce previously.
Barjoyai said global gold prices have the potential to reach US$6,000 per ounce by the end of 2026, while prices are estimated to reach US$6,300 by the end of 2027, according to a report by JPMorgan, a global financial services company.
However, he said the spot gold price is expected to remain around US$4,000 per ounce and could potentially drop to US$3,950 if selling pressure continues, before recovering in the medium term to a range of US$4,100 to US$4,200 per troy ounce.
"In the short term, gold can serve as an instrument to stabilise investment value and reduce the risk of the ringgit depreciating, but it does not offer immediate profit prospects to investors," he said.
He noted that the current decline in gold prices might attract some investors to buy or increase their gold holdings, but the decision should take into account the prospects of price movements in the short and long term.
Barjoyai pointed out that gold investment does not provide direct returns and profits can only be obtained when the price of gold increases before investors sell their holdings.
"The question is, will gold prices increase in the short term? If not, investors may have to wait longer if prices remain stable or do not show an increase.
"Gold has its own price cycle, which is usually longer, lasting 20 to 30 years, therefore investors need to consider long-term trends when making investment decisions," he explained.
He added that although investors may not gain profits in the short term, there is still potential for long-term gains if they continue to hold gold.
-- BERNAMA