SINGAPORE – Gold prices climbed last week while the US dollar retreated as investors assessed volatility in the global bond markets and renewed tensions in the Middle East.
Gold edged higher towards US$4,600 an ounce on Aug 21 and was on track for a third straight weekly gain after the US Treasury said it will double the size of its buybacks of 10- to 30-year government debt to at least US$4 billion per operation.
The move, aimed at steadying a bond market that has come under pressure amid concerns over the growing US fiscal deficit, initially pushed Treasury yields lower and weighed on the US dollar.
The greenback traded at around $1.27 on Aug 21, down from about $1.28 at the start of last week.
Lower yields on government bonds tend to support gold because the opportunity cost of holding gold, which does not pay interest, decreases.
A weaker US dollar can also lift demand for gold by making the dollar-denominated metal cheaper for buyers using other currencies.
OCBC head of wealth advisory Chez Anbu said gold remains an important source of portfolio diversification and a potential hedge against geopolitical risks, policy uncertainty and fiscal concerns.
“This is particularly relevant for Singapore-based investors whose portfolios are heavily concentrated in US dollar-denominated assets,” he said.
“With the US Federal Reserve showing little urgency to tighten monetary policy and its annual Jackson Hole symposium expected to offer further clues on the direction of monetary policy, the US dollar may remain soft in the near term.”
The STI slipped 0.95 per cent through the week to close at 5,688.96 on Aug 21.
UOB shares fell 1.15 per cent through the week to $40.53, while OCBC slipped 0.61 per cent to $30.98. DBS bucked the trend, rising 1.2 per cent to $76.
“Some profit-taking appears to be continuing after the banks’ recent rally, with valuation multiples still sitting well above 10-year averages,” said James Ooi, market strategist at Tiger Brokers.
SATS declines
SATS was the STI’s biggest decliner, falling 13.22 per cent through the week to close at $4.07 after its quarterly results showed slower profit growth amid geopolitical and inflationary headwinds.
Revenue for the first quarter ended June rose 11.3 per cent from a year earlier to $1.68 billion, while net profit increased at a slower pace of 6 per cent to $75.1 million.
The company attributed the weaker margin performance partly to developments in the Middle East, which disrupted cargo flows and flight activity. Inflationary pressures also weighed on operational efficiency and margins.
“SATS’ sell-off appears to reflect a market increasingly focused on the quality and durability of earnings growth,” said Ooi.
Jardine C&C selling Singapore, Malaysia dealerships
Shares of Jardine Cycle & Carriage (JC&C) ended 1.2 per cent higher at $27.50 on Aug 21 after the company announced that it had entered into a conditional agreement to sell its Cycle & Carriage automotive distribution and retail operations in Singapore and Malaysia to Indonesia’s Chandra Asri Pacific.
The proposed transaction involves the sale of automotive entities in Singapore and Malaysia, along with associated trademarks across Singapore, Malaysia and Myanmar to Chandra Asri’s wholly owned subsidiary CCHPL Holdings.
The estimated base purchase price payable in cash is about $265 million. Sale proceeds will be used to pay down corporate net debt.
$333 million that JC&C owes Cycle & Carriage Industries will be transferred to Chandra Asri as part of the deal.
JC&C represents brands including Mercedes, Kia and Mitsubishi in Singapore. Its Indonesian subsidiary Astra, which is not part of the deal, handles brands such as Toyota, BMW, Isuzu and Daihatsu.
Based on first-half 2026 financial metrics, the disposal is expected to generate an estimated gain on disposal of about US$221 million (S$280 million).
Indonesia-listed Chandra Asri said on Aug 21 that the acquisition marks an important step in the group’s regional expansion, and “supports the group’s long-term strategy to build an integrated energy, infrastructure and mobility platform across South-east Asia”.
It builds on Chandra Asri Group’s recent expansion in Singapore, including its acquisition of the Esso-branded retail fuel station network.
ComfortDelGro’s Zig expands private hire fleet
Zig by ComfortDelgro said on Aug 20 that it will invest more than $10 million to boost its private-hire vehicle (PHV) fleet with BYD’s hybrid and electric vehicles (EVs).
The vehicles will be supplied by Vantage Automotive, the authorised distributor of the Chinese EV giant in Singapore.
The investment marks Zig’s broader shift from a taxi-led operator towards a hybrid taxi and private-hire fleet and platform model, said ComfortDelGro.
Zig currently has a fleet of about 7,600 taxis, as well as 4,000 private-hire drivers on its app.
The company reported a 19.7 per cent fall in first-half net profit a week earlier, mainly due to a more than 40 per cent year-on-year drop in operating profit from its taxi and private-hire business to $35.5 million.
CNMC to make mainboard debut
CNMC Goldmine will transfer its listing to the Singapore Exchange mainboard from Aug 28, after shareholders overwhelmingly backed the move at an extraordinary general meeting on Aug 19.
About 97.5 per cent of votes cast were in favour of the transfer, which the Catalist-listed gold miner first proposed in May.
Shares of CNMC climbed more than 12 per cent through the week to close at $1.56 on Aug 21.
Catalist-listed coffee shop operator Kimly is also eyeing a move to the mainboard, which the group on Aug 19 said would raise its corporate profile, improve its access to capital and attract a broader range of investors, including institutional and international investors.
It would also give Kimly a stronger platform to pursue “larger-scale and transformative opportunities”, including acquisitions, portfolio diversification and expansion in “attractive growth sectors, which may include the halal market”.
Kimly, which has been listed on the Catalist since March 2017, currently operates and manages 84 coffee shops and food courts across Singapore, alongside nearly 180 individual food stalls and concept brands like Kedai Kopi and Tonkichi.
The move to the mainboard is subject to several conditions, including securing shareholders’ approval.
Shares of Kimly climbed 5.06 per cent through the week to close at 42 cents on Aug 21.
Other market movers
Oil prices were on track for a second straight weekly gain, with Brent crude trading above US$93 a barrel on Aug 21 as renewed tensions between the US and Iran raised concerns over Middle Eastern supplies.
Bitcoin also recorded strong gains, surging more than 20 per cent through the week. The world’s largest cryptocurrency was trading at around US$77,900 on Aug 21, up from about US$62,800 at the start of the week.
Bitcoin benefited from lower yields following the US Treasury’s move to increase its purchases of longer-term government debt.
Sentiment was also boosted by US President Donald Trump, who on Aug 19 urged lawmakers to pass a “fair version” of the Clarity Act, legislation aimed at establishing a clearer regulatory framework for digital assets.
What to look out for next week
Singapore’s July inflation figures are due on Aug 24, followed by its factory output data on Aug 26.
