PETALING JAYA: The rise in the price of gold to new highs has induced similar movements in the share prices of a number of gold-related counters on Bursa Malaysia, although analysts believe a correction may be due.
The precious metal went past the psychological US$2,300 per ounce ceiling on overnight trading yesterday, touching a peak of US$2,304.96, following remarks from the US Federal Reserve (Fed) chair Jerome Powell that it could be appropriate to begin lowering borrowing costs “at some point this year”.
Historically, gold and equities have had an inverse trading relationship, but the strengthening of the US dollar over the past few years has put paid to that theory, as stocks have risen and fallen in tandem with bullion in contrast to the greenback.
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