Gold investment consultant Syukor Hashim said the price of the precious commodity went up by 37% from early January to August, when it used to exceed RM300 a gramme, but it has fallen to RM256 a gramme currently.

“The price went up due to the threat of Covid-19, which has affected the world economy and indirectly caused investors to choose gold as a safe asset.

“However, following news of the discovery of a Covid-19 vaccine, which led economists and investors predicting the world economy will recover, gold is seen to have lost its attraction as a safe asset,” he told Bernama.

It was reported that people have been flocking to jewellery shops to take the opportunity of the price drop and have not been following the Covid-19 SOPs.

Asked when the gold price is expected to go up again, Syukor said it is difficult to predict “as the price is influenced by current developments”.

“For example, if there is ‘drama’ in the US presidential transition between Joe Biden and Donald Trump, then the price can go up again. Likewise news about Iran claiming that its nuclear scientist was killed by Israel.

“In other words, the rise in gold prices is not only influenced by Covid-19, but by many other factors, but for this year, it is mainly the pandemic,” he said.

Meanwhile, Bernama said a survey of jewellery shops here found that there were fewer customers yesterday than during the weekend.

A gold trader at the Keramat Urban Transformation Centre, Munirah Aqilah Mohd Zahari, said the number of customers at her shop doubled on Saturday and Sunday.

The customers were mostly taking advantage of the low price to exchange old jewellery for new, while some were looking for items as investments and accessories.

Another trader, Nik Ahmad Tarmizi Nik Hassan, said many customers who had cash in hand because of the loan moratorium were looking for gold items to invest in.

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