Imminent availability of vaccine causes drop in gold price
KUALA LUMPUR: The announcement that a vaccine for Covid-19 is just months, if not weeks, away has brought much relief across the world.
However, it has also led to a drop in the price of gold.
Between January and August, the price of this precious metal rose 37% to more than RM300 a gramme, but since news of the impending arrival of a
Covid-19 vaccine, it has dropped to about RM256 per gramme.
Gold investment consultant Syukor
Hashim said gold is regarded as a safe asset during an economic downturn, leading people to accumulate the precious metal.
However, the promise of an economic recovery, thanks to the availability of a vaccine, has led to increased sell-off of gold, leading to a drop in price.
Syukor expects more people to take advantage of the drop in price to purchase more gold and jewellery as an investment.
However, he warned that with more people gathering at goldsmith shops, there would be a high possibility of people flouting the standard operating procedures (SOP) to curb the spread of Covid-19.
Munirah Aqilah Mohd Zahari, a goldsmith at the urban transformation centre in Keramat, Kuala Lumpur, said last weekend was an especially busy time for her.
“I had more than double the number of customers than on a normal day.”
She said some people traded in their old jewellery for new ones while others purchase more as an investment. Many also buy gold jewellery for personal use.
Munirah said she would insist that her customers observe the SOP when they step into her premises.
“I make sure they have their temperature taken, and scan the MySejahtera code or register their names before entering. While inside the shop, the have to keep a safe distance from each other,” she added.
– Bernama