Gold prices seen staying at US$4,000-US$5,000 over next two years
PENANG: Gold prices are expected to stay between US$4,000 and US$5,000 an ounce over the next one to two years, the Malaysia Gold Association (MGA) said.
PENANG, Malaysia - Gold prices are anticipated to remain between US$4,000 and US$5,000 per ounce in the upcoming one to two years, according to the Malaysia Gold Association (MGA). The MGA's president and founder, Datuk Seri Louis Ng, stated that gold continues to be a highly coveted asset; however, fluctuations in interest rates in significant economies might impact investment demand and the precious metal's price trajectory.
Ng emphasized that gold prices are expected to stabilize within the US$4,000 to US$5,000 range until the direction of interest rates becomes clearer. Presently, gold is trading at approximately US$4,350 per ounce.
Ng highlighted that changes in interest rates in the United States and Japan, among other factors, would continue to shape investment demand for gold. Meanwhile, Public Gold's new refinery, situated on a 0.461-hectare plot within the Batu Kawan Industrial Park, boasts a built-up area of around 4,038.68 square meters. The facility is engineered to refine up to 10 tonnes of precious metals annually, with an expandable capacity ranging from 20 to 50 tonnes annually as market demand expands.
This refinery will allow Public Gold to process scrap gold locally instead of exporting it, thereby minimizing transportation, insurance, and refining expenses. Ng further stated that Public Gold has exported around two tonnes of scrap gold to Hong Kong and Singapore for refining over the past two months. The establishment of this state-of-the-art refinery, adhering to international standards, enables local refinement of scrap gold, he added.
Steven Sim, the Entrepreneur and Cooperatives Development Minister, suggested that Penang should contemplate constructing a gold bazaar and storage facility to bolster its goal of becoming a regional financial hub. Sim noted that the proposed gold ecosystem would complement Penang's thriving gold jewellery manufacturing industry, which constitutes roughly 70% of Malaysia's gold jewellery manufacturing and production.
He emphasized that the development of a gold bazaar could transform Penang into an alternative regional trading center while enhancing gold's significance as a crucial asset in the state's financial hub aspirations.
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