Reports about COVID-19 vaccine, which is expected to be available early next year, has resulted in the drop in the price of gold.

"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 teh discovery of a COVID-19 vaccine, which led economists and investors predicting the world economy recovery, gold is seen to have lost its attraction as a safe asset," gold investment consultant Syukor Hashim was quoted telling Bernama.

According to him, the price of the precious commodity went up 37% to cost over RM300 a gramme from early January to August, but is has now fallen to RM256 a gramme.

It was recently reported that people have been flocking to jewellery shops, violating COVID-19 SOPs (standard operating procedures) to buy gold, following the price drop.

In Kota Bharu, Kelantan, nine people, including shop owners and customers were slapped with compounds for violating the SOPs set, such as not wearing face masks and not practicing physical distancing.

According to Syukor, although the price of gold is mainly influenced by current developments, for this year, it was mainly the pandemic.

Bernama also spoke to gold traders, who said that they saw double the number of customers over the weekend.

One trader, Nik Ahmad Tarmizi Nik Hassan, said many of his customers were looking for gold items to invest in as they had extra cash in hand due to the loan moratorium given by the government.

Recently, it was reported that Malaysia has agreed to buy 12.8 million doses of Pfizer's COVID-19 vaccine.

As of yesterday, a total of 65,697 people have been infected by COVID-19 in Malaysia, and 360 people have died from the disease.

The global COVID-19 infection and death tally have surpassed 63.5 million, and 1.4 million, respectively.

Source: Bernama
Photo source: Astro Awani