08/07/2011 (Bernama) - The ringgit is expected to appreciate to 2.95 against the U.S. dollar in the fourth quarter of this year from 3.00 now and rise further to 2.88 by the first quarter of next year owing to risk aversion to the dollar, an economist said Thursday.

Standard Chartered Bank Chief Investment Strategist Steve Brice said as the market was taking risk aversion positions, investors were now turning away from risky assets like the dollar, making gold more attractive as a long-term commodity.

Looking further ahead, he said the ringgit would moderate to 2.95 in the second quarter of next year.

Gold price is expected to increase to US$1,650 per ounce by next year compared with US$1,460 this year and further strengthen to US$2,100 in 2014, he told the media on Standard Chartered's second half investment 2011 outlook here.

Brice also said Malaysia's Gross Domestic Product(GDP) was expected to expand by 5.1 per cent this year and 6.0 per cent in 2012.

"The growth will be cushioned by a healthy fiscal account despite uncertainties in the global outlook," he said.

He said Malaysia would stand to benefit from positive crude palm oil (CPO) prices despite bearishness in other agricultural commodity prices and projected prices, averaging RM3,600 per tonne this year, to move up to RM3,700 per tonne next year.

"Although the CPO demand from China was currently down, it is expected to pick up in the third and fourth quarters of this year," he added.