Kuala lumpur: Gold and silver prices are anticipated to maintain a bullish trajectory over the mid- to long-term, despite experiencing short-term volatility caused by global macroeconomic and geopolitical developments, Malaysia Gold Association (MGA) president Datuk Seri Louis Ng stated.

According to BERNAMA News Agency, recent fluctuations in prices have largely been attributed to market overreactions to negative news, including expectations of tighter United States monetary policy and ongoing geopolitical tensions. Ng emphasized that the core fundamentals supporting precious metals remain robust.

Ng highlighted the global debt situation as a key driver behind the recent gold price surge. While cautious about specific forecasts, investment banks have projected gold prices to range between US$5,800 and US$6,000 per ounce (US$1=RM3.95). On the silver front, Ng noted the persistent supply-demand imbalance, with deficits recorded over the past four years due to strong industrial demand in sectors such as electric vehicles and solar panels.

Additionally, easing geopolitical tensions, including developments involving the US and Iran and a temporary truce between Ukraine and Russia, have contributed to recent price pullbacks. Domestically, high gold prices, with some retail prices reaching about RM800 per gram, are expected to moderate buying activity, particularly in terms of volume. Ng observed a shift in retail buying patterns in Malaysia, with a significant interest in investment products like bullion and coins, which now account for about 60 percent of purchases compared to around 40 percent for jewellery.