Shoppers rush for gold in Terengganu as prices fall during the festive season

 

THE DROP in gold prices to as low as RM560 per gram for 916 gold, compared with RM650 previously, has triggered an unusual rush.

News portal Sinar Harian reported that crowds flocking to gold shops around Pasar Besar Kedai Payang here to seize the opportunity for festive gold shopping.

A survey further found that most gold traders were relieved by a sharp increase in customers of up to 70 per cent, particularly visitors from outside Terengganu such as Selangor, Pahang and Johor.

“Although weekends in Terengganu are public holidays, we remain open as many out-of-state customers returning here take the opportunity to purchase gold,” said a gold trader.

Another claimed that gold prices on the first day of Aidilfitri were around RM530, compared with RM560 earlier, while a week before that prices had reached RM650 per gram.

On another note, investing.com pointed out that Gold has come under pressure largely because its role as a hedge against the dollar has weakened in the current environment. 

“When the dollar strengthens, investors are typically less compelled to hold gold as a diversifier, reducing demand at the margin,” said investing.com

That dynamic has been a key driver of the recent pullback, alongside tighter financial conditions and a more aggressive policy backdrop.

Market positioning is also a significant factor as well. Gold began the year with strong exposure, first supported by central bank purchases and later bolstered by investor inflows. 

However, as volatility increased, some of these positions have been trimmed, with retail investors in particular selling gold to free up cash.

At the same time, most gold traders are advising the public to take advantage of this opportunity, as future price movements are uncertain and are likely to rise again in the near term. — Focus Malaysia