Malaysia Gold Investment

Gold had a torrid time last week, closing Friday at $1,610/oz, down $57/oz for the week. Much of this was owing to a market anxious about the lack of support from Asia due to the Lunar New Year celebrations. This concern was understandable since, as we have said before, a key point of support for the gold price in previous weeks has been unusually strong physical demand, mostly out of Asia. With this support absent, downside for gold was been opened up. However, we do foresee a recovery and maintain our preference for a strategic long position in gold, targeting an average price of $1,720 this year. This morning though, we have already seen some upside as Asian participants return.

On Thursday the price of gold gave back yesterday’s gains as the yellow metal was unable to gain any traction in the aftermath of the Federal Reserve’s latest monetary policy meeting.  The spot gold price finished down by $10.94, or 0.7%, at $1,665.13 per ounce after briefly surpassing the $1,680 level on Wednesday afternoon.  The SPDR Gold Trust (GLD), a proxy for the price of gold and the world’s largest gold ETF, closed lower by $0.99, or 0.6%, at $161.20 per share. Silver relinquished its prior day advance alongside the gold price, as it slid by $0.60, or 1.9%, to $31.46 per ounce.  As for gold and silver stocks, they came under pressure amid a combination of weakness in precious metals and the broader equity markets.  The Philadelphia Gold & Silver Index (XAU) closed with a loss of 0.8% at 149.68 while the S&P 500 Index dipped by 0.3% to 1,498.11. Among heavily-traded gold and silver stocks, notable decliners included XAU components Agnico-Eagle Mines (AE