Gold prices rose to a record high on Thursday as investors turned to bullion for safety on fears US President Donald Trump's tariff plans would stoke inflation and a global trade war.

Spot gold was up 0.5% at US$2,945.83 an ounce, as of 0621 GMT, after hitting a record high of US$2,947.11 earlier in the session.

Bullion has risen 12% so far this year and hit a fresh peak for the tenth time on Trump tariff fears.

US gold futures GCcv1 gained 0.9% to US$2,963.80 on Thursday.

"Uncertain outlooks for both global trade and inflation are proving to be conducive for gold and are acting to bring the US$3,000 level within range," said Tim Waterer, chief market analyst at KCM Trade.

Since his inauguration, Trump has imposed a 10% tariff on Chinese imports and a 25% tariff on steel and aluminium. He said on Wednesday he would announce tariffs related to lumber, cars, semiconductors and pharmaceuticals "over the next month or sooner."

Minutes of the Federal Reserve's last policy meeting showed on Wednesday that Trump's initial policy proposals raised concerns about higher inflation and affirmed a continued pause on rate cuts.

Despite chances of fewer rate cuts this year, market participants maintain their overall bullish outlook for gold.

"Gold has and should continue to benefit from robust physical market demand, underpinned by resilient central bank purchases and as physical gold ETFs transition from sellers to marginal buyers," said Trevor Yates, analyst at Global X.

Gold is seen as a hedge against geopolitical risks and inflation, but higher interest rates dampen the non-yielding asset's appeal.

"If we look at potential risks which could slow gold prices down, safe-haven demand could dry up somewhat if a peace deal moves closer to fruition between Russia and Ukraine," Waterer said.

Trump denounced Ukrainian President Volodymyr Zelenskiy as a "dictator" on Wednesday and warned he had to move quickly to secure peace or risk losing his country.

Spot silver firmed 0.5% to US$32.88 an ounce. Platinum gained 0.4% to US$976, while palladium rose 0.6% to US$973.87.

Source: Theedgemarkets

SHANGHAI (Feb 20): China's yuan strengthened against the dollar on Thursday, as market sentiment improved after US President Donald Trump said a new trade deal with Beijing was possible.

Renewed tariff threats under the Trump administration have been weighing on the yuan in recent months, and the president's latest comment eased investor worries about a further deterioration in the Sino-US trade tensions in the short term, currency traders said.

During Trump's first term as president, a series of tit-for-tat US-China tariff announcements drove the yuan down more than 12% against the dollar between March 2018 and May 2020.

As of 0331 GMT, the onshore yuan was 0.07% higher at 7.2724 to the dollar, while its offshore counterpart traded at 7.2731.

Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate, around which the yuan is allowed to trade in a 2% band, at 7.1712 per dollar, and 1,144 pips firmer than a Reuters estimate of 7.2856.

The central bank has set its official guidance on the firmer side of market projections since mid-November, which analysts and traders see as a sign of unease over the yuan's decline.

The yuan's strength also comes as authorities face a delicate balancing act between financial and currency stability and monetary easing, traders and analysts said.

China left lending benchmark loan prime rates (LPRs) unchanged for the fourth straight month in February.

"The US's relatively mild 10% tariffs on Chinese goods, with room for trade negotiation, suggested that the trade war shocks could be more affordable to China, reducing the urgency for immediate rate cuts," said Ken Cheung, chief Asian FX strategist at Mizuho Bank.

Meanwhile, the state-owned Economic Daily said on Thursday that the central bank's recent improvements to its macroprudential policy toolbox were a key initiative for preventing and fending off financial risks and maintaining the stability of financial markets.

"The global economic and financial situations remain severe and complex, with the adverse impact of changes in the external environment deepening and factors of instability and uncertainty clearly increasing," the newspaper said in an editorial.

The newspaper listed examples of improvements including the central bank's recent move to boost capital flows by allowing companies to borrow more overseas and the regular issuance of yuan bills in Hong Kong to stabilise foreign exchange market expectations and increase market resilience.

Source: Theedgemarkets

US President Donald Trump said it would be possible to reach a fresh trade deal with China, signalling he is open to heading off a brewing trade fight between Washington and Beijing.

“It’s possible, it’s possible,” Trump told reporters on Air Force One on Wednesday, when asked if he would make a new agreement with China.

Trump did not describe the parameters of a potential deal, and any agreement would face significant obstacles — some of the president’s own making. Trump has ratcheted up pressure on China with an additional 10% tariff on all imports from the country, punishment for what he said are unfair Chinese trade practices and failure to stop the flow of fentanyl into the US.

The president nonetheless heaped praise on Chinese President Xi Jinping, but once again did not say if or when they would speak directly.

“There’s a little bit of competitiveness, but the relationship I have with President Xi is, I would say, a great one,” Trump said.

Trump brokered what was billed as an initial trade deal with China in Jan. 2020, under which Beijing promised to crack down on theft of US trade secrets and technology, pledged to purchase an additional US$200 billion (RM886 billion) in American products by the following year and lower some trade barriers for US exports. But the relationship was derailed just weeks later when the coronavirus pandemic swept the globe, which Trump blamed on China.

“They had about US$50 billion worth of our product, and we were making them buy it. The problem is that Biden didn’t push them to adhere to it,” Trump said, referring to his predecessor.

‘Off the cuff’

Trump’s comments, made during Asian market hours, are the latest example of the president’s ability to influence market sentiment with a few short words, forcing China-focused traders to parse scant details and tone for clues as to the future of the US-China relationship.

Their initial read settled on mildly positive. The Chinese yuan climbed on Trump’s comments, gaining 0.2% in the offshore market after three straight sessions of drops. The onshore yuan rose 0.1%. Chinese stocks pared some of their early declines, and the Hang Seng China Enterprises Index, which comprises Chinese stocks listed in Hong Kong, trimmed its intraday drop to under 1.5% from as much as 2.4%.

“Markets are still getting used to the barrage of social media posts, comments to reporters and interviews that President Trump is giving,” said Khoon Goh, the head of Asia research at ANZ Banking Group. “This is so different from the previous administration.”

Trump’s comments on China are “just an off the cuff comment and I wouldn’t read too much into it”, he added.

Eddie Cheung, a senior strategist at Credit Agricole CIB in Hong Kong, said Trump’s approach to China has been “milder than expected” so far, which has given some support to markets. “But it’s reasonable to assume there will still be bumps on the way towards such a trade deal.”

Read also:
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Source: Theedgemarkets

In 2024, corporate sustainability faced a reckoning. As several multinational companies backpedalled on emissions pledges, and anti-environmental, social and governance (ESG) campaigns gained momentum in the West, the gap between corporate rhetoric and planetary reality widened. There, climate disasters became abstractions in some boardrooms — while in countries like Malaysia, floods submerged villages and towns alike, displacing over 100,000 people and drowning not just land but also the livelihoods of the rakyat. It is a stark dose of realism about the effects of climate change.

The scale of climate harm demands more than mere finger-pointing. Instead, we must reimagine environmentalism and rewrite our playbook on sustainability. For too long, the environmental movement has relied on opposition and confrontation, which is hardly sufficient to drive real change.

Green growth thinkers Ted Nordhaus and Michael Shellenberger argue that environmentalism must evolve. In their book Break Through: Why We Can’t Leave Saving the Planet to Environmentalists, they challenge the belief that protecting nature is enough. Moving beyond “the politics of limit” that once defined environmentalism, they advocate for a “politics of possibility” — one that blends conservation efforts with the innovations that drive business while prioritising partnership as the most effective path forward.

Since the green economy needs all hands on deck, entrepreneurs, policymakers, scientists and activists must co-create solutions. Sustainability challenges are too complex for any single group to tackle alone. Businesses innovate and scale, governments regulate and civil society organisations must shift from being critics to collaborators — bridging stakeholders and aligning capitalism with ethical priorities.

Malaysia is already embracing this shift. Many civil society groups have evolved to be more solution-oriented. Opposition is no longer the default stance. Instead, they work with governments and the private sector to develop practical sustainability strategies and potential solutions. This shift shows that partnerships yield better outcomes than outdated adversarial tactics.

The All-Party Parliamentary Group Malaysia on Sustainable Development Goals (APPGM-SDGs) is a standout example. It emerged from an informal network of over 40 non-governmental organisations (NGOs) under the umbrella of the Civil Society Alliance for Sustainable Development Goals, an attempt since 2015 to broaden the environmental movement by aligning it with social justice issues such as gender equality and the rights of indigenous peoples. By uniting the environmental movement and other progressive causes under the shared vision of the 17 United Nations SDGs, the APPGM has made tangible contributions on the ground. It works with over 150 of Malaysia’s 222 parliamentary constituencies to identify local challenges and deliver micro-solutions tailored to each community. This is not just activism; it is nation-building.

Similarly, the World Wide Fund for Nature (WWF) Malaysia has always prioritised collaboration in its conservation efforts. It works with governments, financial institutions and businesses to integrate ecological thinking into economic development. From co-developing sustainable landscapes with palm oil producers to shaping green financing with Bank Negara Malaysia, its reach is wide. By engaging diverse stakeholders, WWF helps guide corporate behaviour towards sustainability through cooperation rather than confrontation.

However, progress is often hindered by conventional approaches to environmental advocacy. While scrutiny plays a significant role in holding companies accountable, not all forms of criticism are constructive. Some NGOs remain entrenched in radical old-fashioned opposition, dismissing even well-intentioned corporate efforts as “greenwashing”. Although genuine cases of greenwashing must be exposed, misinformed accusations risk undermining meaningful progress. When criticism serves merely to name and shame companies, it becomes a blunt instrument that stifles rather than promotes climate action and the growth of the green economy.

In the context of a developing country, harsh public criticism of corporations often does more harm than good. Many are in the early stages of adopting sustainability, constrained by limited funds, expertise or infrastructure. It is damaging when watchdog groups denounce companies for not being “green enough” based on highly subjective or ideal standards. Rather than offering solutions, weaponising such criticism reinforces an outdated environmental mindset. Social media unfortunately amplifies this effect without due care beyond catchy headlines.

The result is a chilling and undesired effect widely known as “greenhushing” — where companies, fearing backlash, downplay or underreport their decarbonisation commitments and progress to avoid being labelled as greenwashers. A 2021 International Finance Corporation study found that small and medium enterprises in Southeast Asia facing aggressive ESG scrutiny were 35% more likely to abandon sustainability projects. When businesses hesitate to take bold steps or merely stay silent, the collective momentum weakens and the green economy stalls.

Progress requires replacing counterproductive criticism with solution-focused dialogue. To move the green needle, NGOs can adopt tiered scorecards that evaluate companies based on measurable efforts and transparency rather than demanding flawless outcomes. This approach requires watchdogs to develop a nuanced understanding of context — differentiating between deceptive practices that mislead consumers and erode trust, versus early-stage efforts that, while imperfect, signify genuine intent for progress. To uphold integrity in their advocacy, watchdogs must also educate the public — encouraging informed decision-making rather than exploiting gaps in knowledge. This not only strengthens credibility but also leads to better corporate sustainability outcomes. After all, sustainability is a marathon, not a sprint, and celebrating small wins is crucial to building the desire and momentum for transformative change.

Similarly, corporates ought to resist the temptation to retreat into silence when faced with watchdog critiques. Instead, they should embrace transparency and respond constructively, using each challenge as an opportunity to counter allegations with clear, fact-based disclosures.

At the same time, we need to scrutinise the watchdogs themselves. Quis custodiet ipsos custodes — who will guard the guards? Who holds the self-appointed “green police” accountable? Do they have the scientific legitimacy to police the very efforts they decry? Some watchdogs, armed with limited expertise and relying on keyboard warfare tactics, may be pushing their own agendas rather than truly advocating for genuine accountability and reform.

At its core, naming and shaming is a reputational play that shapes perception — casting some corporations as sustainability villains. In a time when perception outweighs facts, such tactics may elevate critics with fame and funds. However, they often come at the expense of companies earnestly trying to do the right thing — and ultimately, at the cost of the nation and its people.

Sustainability demands steady progress, even if imperfect. In Malaysia, livelihoods hang in the balance every time it floods, and the challenge is increasingly existential. If we let perfection stand in the way of action, we risk paralysing meaningful climate efforts.

Malaysia’s green economy cannot thrive in a culture of fear — fear of imperfection, scrutiny or collaboration. It thrives when diverse stakeholders bring their unique strengths to the table. By abandoning the blame game and embracing a solutions-oriented approach, we can collectively accelerate our transition. The time to act is now with an unwavering commitment to progress while continuously striving towards perfection — but never waiting for it.

Source: Theedgemarkets