Kuala lumpur: Gold is expected to increase by a further 10 per cent in September from the current level of US$3,370 per ounce, driven by expectations that the United States Federal Reserve will lower its interest rates.

According to BERNAMA News Agency, Malaysia Gold Association president Datuk Seri Louis Ng is confident that the precious metal is poised to rise further as the narrowing of the interest rate differential between the US dollar and the Malaysian ringgit is expected to spur demand.

Gold is currently hovering at US$3,370, up by 28 per cent from US$2,630 at the beginning of the year, largely due to geopolitical tensions and market uncertainty, he told Bernama after appearing on Bernama TV’s ‘The Nation’ programme.

Ng noted, “This is a record-breaking performance. In the first seven months of the year, we’ve seen a 28 per cent appreciation in gold prices.” He observed that prices have been consolidating over the past three months, and he anticipates a breakout following the expected Fed interest rate cut around September.

Public Gold, one of Malaysia’s leading gold trading companies, is closely monitoring these developments. When asked about the impact of global conflicts like the Russia-Ukraine war and the US-China trade war on gold demand, Ng suggested that the momentum from these events is “already slowing down.”

Ng emphasized that the anticipated interest rate cut by the Fed is the primary factor that could lead to a significant increase in gold prices. He projected that prices could rise by another 10 per cent, translating to an increase of about US$300 to US$400 per ounce from the current price.