According to data recently released by the World Gold Council, as China actively increases its gold reserves, global gold prices will reach the highest level in history in April 2024. In the first quarter of this year, the gold reserves of the People's Bank of China (Central Bank of China) increased by 27 tons, and has been increasing its gold holdings for 17 consecutive months.
After the price of gold surpassed a record $2,400 per ounce, it sparked widespread discussion about price drivers. MetalsDaily.com's Ross Norman explained China's key role in gold's rise in an interview with the Investing News Network.
He pointed out, first, that the key support behind a stable gold price of 2,050 US dollars or 2,100 US dollars per ounce is high-quality purchases from central banks. The reason for this is a high-quality purchase, because central bank purchases are generally long-term, and it is unlikely that these gold assets will be sold during price pullbacks, including the Central Bank of China.
At the same time, ordinary Chinese consumers have a soft spot for gold, and institutional purchases of exchange-traded funds are also strong. China's Gen Z and millennials are flocking to buy gold, even buying gold products at higher premiums, such as the “Save Gold Beans” craze on Chinese social media.
Norman said that earlier this year, all of these factors were in place, but that changed when gold prices began to take off on March 1. Heavyweight players have appeared in the gold market, but...

Helping the Composite Index challenge the injection of 160 billion dollars of foreign capital into Malaysian stocks
Recently, good news has been spreading frequently in the Malaysian market, driving net purchases of Malaysian stocks to RM1.06 billion last week, the biggest weekly net purchase amount in the past two years; Malaysian stocks also reached a 2-year high, challenging 1,600 points.
According to the capital flow report released by MIDF Research today, foreign investors were net buying Malaysian stocks for 4 trading days last week, totaling RM1.06 billion, which is 3.6 times higher than the previous week. It is also the highest weekly net purchase record in the past two years.
This drove Malaysian stocks up 0.92% last week to a high of 1589.59 points.
The most recent large-scale capital inflow to Malaysian stocks was in the week of March 18, 2022 (Friday). The total weekly capital inflow was RM1.18 billion.
Last week, the most foreign purchases were utilities (RM443.7 million), financial services (RM277.3 million), and communications and media (RM140.4 million).
Meanwhile, the sectors with the highest net foreign sales were energy (RM22.4 million), farming (-RM16.9 million), and industry (RM10.4 million).
Furthermore, the local agency became a net seller last week, with total sales of RM903.1 million, ending its position as a buyer for 9 consecutive weeks.
Retail investors, on the other hand, sold Malaysian stocks net for the 8th week in a row, totaling RM112.2 million.
In terms of participation, the average daily transaction value of all three parties increased. Among them, foreign investment increased the most significantly, reaching 22.0%, local institutions, and...

US interest rate cuts are expected · Malaysia's economy will take off Foreign exchange experts: the ringgit can strengthen this year
Supported by factors such as the US may cut interest rates and the Malaysian economy is expected to take off, foreign exchange experts believe that the ringgit will strengthen this year.
Satyandi, head of foreign exchange research and strategy at Bank of Malaysia in Singapore, pointed out that the Federal Reserve may soon enter a cycle of interest rate cuts to create a favorable interest rate environment for the ringgit, and the Malaysian economy is expected to take off this year, driven by various major blueprints and development plans, which will help the ringgit strengthen this year.
“If the fuel allowance rationalization measures are successfully implemented, it will also strengthen the market's confidence in the ringgit. 2024 will be a better year for the ringgit.”
In any case, he did not give a forecast of the ringgit exchange rate. Currently, the exchange rate of the ringgit to the US dollar is hovering around RM4.77.
Satyandi pointed out that the ringgit is still extremely undervalued, and this trend has continued since the oil price crash earlier.
“As a foreign exchange reserve and payment currency, the low risk nature of the US dollar will continue to attract significant demand until the Federal Reserve begins to signal that interest rates will be cut or monetary policy relaxed.”
Ma Meri difference is the key
He said that the interest rate spread between Malaysia and the US is one of the key factors affecting the ringgit trend, so when the Federal Reserve cuts interest rates, the ringgit may rebound.
“At the same time, improvements in the Chinese economy and the Chinese government's economic stimulus measures will support the renminbi and other regional currencies.”
He added that as long as Malaysia's export and investment prospects improve further, then the fundamental momentum on a macro scale will...