kuala lumpur: The price of gold is on fire! Precious metals continue to go against expectations, repeatedly destroying record highs as investors seek to evacuate from global economic turbulence.
In summary, on October 30, 2024, Friday settled at 2,693.23 US dollars (RM11,906) (US$1 = RM4.42) per troy ounce in January 2025 after a record high of 2,787.61 US dollars (RM12,323) per troy ounce.
Gold is currently violating US$3,000 (RM13,262) per troy ounce as of March 20, 2025, and is now able to withstand 3,036.74 (RM13,425) per troy ounce as of March 20, 2025, according to data from Goldprice.org. The fiery question is how much higher it can be.
Dr. Mohd Afzanizam Abdul Rashid, Bank Bank Muamarat Malaysia BHD Chief Economist, pointed out one important factor: uncertainty.
“Every time fear grasps the world economy, gold shines brightest. It’s not just a storage for wealth, it’s also a hedge against inflation, currency devaluation and geopolitical instability,” he told Bernama, adding that the numbers prove it.
He pointed out that central banks around the world are actively stockpiling gold, increasing their share of aggregate demand from just 1.8% in 2010 to an astounding 21.0% in 2024.
“This rapid accumulation has increased at a yearly rate of 20.2%, but has increased gold prices.
“As this background, gold prices remain constructive in the near future. But like any asset class, price fluctuations will occur due to market emotional changes and risk appetite,” he added.
Meanwhile, he further explained that the uncertainty index of global economic policy skyrocketed to 339.36 points in November 2024, reflecting growing concerns over US Federal Reserve policies, trade tensions and political instability under Donald Trump’s second term.
“Historically, every time economic uncertainty surges, the price of gold follows that,” he added.
Other products: rising, but behind the gold
Gold steals the spotlight, but other items have also experienced significant price movements.
For example, from the writer’s observation, cocoa surged to a 50-year high in 2024, reaching USD 12,906 per tonne (RM57,056) in December 2024. This led to a decline in supply and supply supply, mainly due to harmful weather conditions and underinvestment in major cocoa production areas.
As of March 20, 2025, the cocoa price was 7,746.3 (RM34,245) per tonne (according to the TradingConomics website). A slight decrease has been shown, but it continues to rise compared to historical levels.
Oil prices are also unstable. On March 20, 2025, Brent crude rose 0.2% per barrel to USD 71.78 (RM317), due to instability in the Middle East and China’s stimulus package to strengthen the economy.
Despite these fluctuations, oil prices do not reflect the unprecedented surge observed in gold.
Coffee prices, meanwhile, show significant volatility, reflecting changes in global supply chains and changing consumer demand patterns.
The price of Arabica beans reached USD 3.50 per pound (RM15.47) in December 2024, marking the highest level since 1977, with an astounding 83% increase in 2024.
In Malaysia’s key commodity, palm oil has experienced price fluctuations in recent years.
Palm oil prices have fallen RM246 (5.54%) per tonne since the beginning of 2025 after reaching an all-time high of RM7,268 in March 2022.
This decline is primarily due to adjustments in global supply and demand and evolving trade policies that have affected major palm oil markets.
In summary, the writer says that while commodities such as cocoa, oil, coffee and palm oil have experienced significant price movements, nothing coincides with the unprecedented surge in gold.
Gold prices continue to rise in meteors: what does that mean for Malaysians?
For Malaysia, the Gold Rush has both winners and losers.
On the bright side, gold jewelry remains a cultural staple, especially among women and women who utilize Ar-Rahnu (Islamic pawn broke), Mohd Afzanizam said.
“The growing popularity of gold-based investments has led more Malaysians to diversify their portfolios.
“But Sky-High prices reduce gold access for many consumers. We may see a shift towards alternative investments and low-cost jewellery options,” he said.
Meanwhile, the retailer said he was caught up in a high stakes game. Some are thriving, while others struggle to keep up with fluctuating prices.
“But the competition is fierce. Take Negeri Sembilan’s Kuala Pillar, for example. It will become a gold shopping hotspot and attract buyers from all over the country with competitive pricing,” he said.
For Malaysians sitting on gold investments, a big dilemma remains.
“It depends on your financial goals. If you’re investing for retirement, it might be wise to hold your money. But if you’re trading, timing is everything.”
Impact on the Malaysian Jewelry Industry
Datuk Wirallis NG, president of Malaysia Gold Association (MGA), said the rise in gold prices had a complicated impact on Malaysia’s jewelry industry.
On domestic flights, consumers said they are being cautious when purchasing gold jewelry, especially during peak seasons such as weddings.
“However, the export sector has benefited greatly from the price spike, with gold jewelry exports reaching an estimated RM7.7 billion in 2024.
“While domestic sales are facing challenges, the overall outlook for the gold jewelry sector remains positive,” he told Bernama.
Ng said the Malaysian jewellers have adjusted their pricing strategy by offering lighter designs that require less gold and allowing customers to purchase jewelry at a more affordable price.
“In addition, many jewellers have incorporated alternative materials such as lab-grown diamonds that offer cost-effective but high-quality options.
“There is a growing trend in minimalist jewelry designs and the increasing use of materials such as sterling silver and gold-plated designs makes jewelry more accessible to price-sensitive consumers,” he explained.
Ng further said the surge in gold prices has strengthened the appeal as an investment asset.
“Retailers responded by introducing small investment gold bars, such as 0.25 grams (g), 0.5 grams and 1 grams, to accommodate first-time investors and investors looking for a low-cost entry point for gold investments.
“The popularity of these smaller denominations reflects the growing recognition among Malaysians of the role of money in the preservation of wealth,” he added.
Outlook: Will Gold reach USD 5,000?
Some speculators predicted that gold would skyrocket to US$5,000 (RM22,104) per troy ounce by the end of the year, but Mohd Afzanizam was cautious and said its value could take three to five years.
“A more realistic goal is US$3,000 per troy ounce and US$3,500 per troy ounce over the next few years.
“To be honest, it’s difficult to predict gold prices.
Meanwhile, the Malaysian jewelry industry is adapting to new landscapes by focusing on innovation and diversification, Ng said.
“Industry players are exploring new markets to expand their products, incorporate alternative materials and stay competitive in an environment where gold prices continue to rise.
“Current design trends and consumer preferences include minimalist and lightweight designs and alternative materials,” he added.
