Kuala lumpur: Global demand for gold bars as a secure investment is on the rise, particularly among central banks and high-net-worth individuals, according to the Malaysia Gold Association.

According to BERNAMA News Agency, the association’s president, Datuk Wira Louis Ng, stated that central banks in countries such as China, Poland, and Kazakhstan are actively increasing their gold reserves to diversify their national holdings. He highlighted that while the demand for investment-grade gold is surging, there is a noticeable decline in the gold jewellery segment across Asia, including strong markets like China and India.

Ng pointed out that the international gold price has been holding steady at around US$3,300 per ounce, reflecting a 24 percent increase since the start of the year. This price stability is attributed to strong institutional demand, especially from global fund managers acquiring gold through exchange-traded funds (ETFs) for high-value clients.

He further attributed this trend to widespread geopolitical tensions, including conflicts in the Middle East, the ongoing war in Ukraine, and trade frictions between the United States and China, which have heightened investor caution. Given these uncertainties, gold continues to be viewed as a reliable store of value, prompting central banks, institutional investors, and retail investors to respond accordingly.

However, Ng acknowledged that retail demand for gold jewellery is facing challenges. The retail jewellery market is on a downtrend and not experiencing the same momentum as investment-grade gold.

Looking ahead, Ng expects the gold market to remain stable in the near term, with prices likely to continue consolidating around the US$3,300 level as investors monitor ongoing global tensions and economic developments.