BIMB Securities sees strong upside for local gold ETF despite recent weakness

Wed Mar 25 2026

BIMB Securities said the TradePlus Shariah Gold Tracker has plenty of upside, citing the current sell-off as temporary. The research house maintained its ‘buy’ call on the TradePlus Shariah Gold Tracker with an unchanged target price of RM6.94, implying an upside of about 30% from the current market price of RM5.33.

The research house noted that the recent weakness in gold prices was due to war-driven inflation fears, rising real yields, US dollar strength, and liquidity-driven outflows. “We believe the current weakness is cyclical and not structural.

"The medium-term case for gold remains intact, underpinned by policy credibility erosion (repeated unilateral military actions risk undermining confidence in US institutions and assets), deteriorating fiscal dynamics (war expenditure and structural deficits continue to weaken US balance sheet credibility) and central bank accumulation (reserves diversification, particularly from emerging markets, provides a structural floor for gold),” it said in a note on Wednesday.

Gold has fallen below its 50-day moving average of US$4,969/oz and is now testing the 100-day level at US$4,609/oz, with downside risk towards US$4,096/oz if momentum persists.

BIMB Securities expects gold to reprice sharply higher once real yields stabilise, reiterating its end-2026 house call of US$5,400/oz with USD/MYR at 4.00.

Source: https://theedgemalaysia.com/