The price of gold has fallen to $1,661.19 as of 22 September and the price of gold has fallen for 6 months in a row. If it falls further below the $1,650.83 mark then this is a fall of over 20% compared to the close of 2020.
With the Federal Reserve raising interest rates by 0.75% for the third consecutive time, this has also driven the strong dollar, with the dollar index hitting new 20-year high levels. The strong dollar impact on dollar-denominated commodities, including raw materials, minerals, metals and energy will be under pressure, and market capital may shift from the safe-haven nature of gold to the dollar, with gold prices bearish.
The price of gold rose sharply in February, when the military conflict between Russia and Ukraine broke out. Gold prices then began to collapse as the Federal Reserve began to tighten money and curb domestic inflation in the US.
Those who like gold jewellery here should think of buying gold jewellery from a gold jewellery shop. In fact, buying gold jewellery in a gold shop is not an investment.
If you want to buy gold for investment, then the best way is through the banks’ gold investment trading platform. Various banks in the country have launched gold investment accounts.
Maybank and CIMB both have an online gold investment facility where users can purchase a minimum of 1 gram of gold and all purchases and sales are made online. When a user purchases gold through the bank’s gold investment account, they do not receive physical gold, but only see a number on the account. The bank will determine the daily gold buying and selling price based on the international gold price.