Neutral on gold price

Gold prices and the greenback have an inverse relationship. As the dollar gets stronger against other currencies, gold prices will fall as it becomes more expensive in other currencies, driving down demand.

IN 2020, investors generally turned to safe-haven assets that protected their portfolios from the volatility due to the turmoil in global financial markets induced by the Covid-19 pandemic outbreak.

One of the classic example of such asset is gold. The precious metal commodity was on a strong footing after it rose to a level of more than US$2,000 (RM8,328) per ounce during early August for a short period of time, and then retreated back to around US$1,800 (RM7,495) per ounce for the rest of 2020. By the end of 2020, gold climbed by more than 24% compared to during early of the year.