Kuala Lumpur: Gold price is on fire! The precious metal continues to defy expectations, repeatedly smashing record highs as investors seek refuge from global economic turbulence.
According to BERNAMA News Agency, on Oct 30, 2024, gold surged to an all-time high of US$2,787.61 per troy ounce before settling at US$2,693.23 per troy ounce in January 2025 (US$1=RM4.42). Now, the gold has breached US$3,000 per troy ounce to stand at US$3,036.74 per troy ounce as of March 20, 2025, according to the goldprice.org data. The burning question is: how high can it go?
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid pointed to one key factor — uncertainty. ‘Whenever fear grips the global economy, gold shines the brightest. It is not just a store of wealth but 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 worldwide have been aggressively stockpiling gold, increasing their
share of total demand from a mere 1.8 per cent in 2010 to a staggering 21.0 per cent in 2024.
Meanwhile, he further explained that the Global Economic Policy Uncertainty Index soared to 339.36 points in November 2024, reflecting growing concerns over the United States Federal Reserve policies, trade tensions, and political instability under Donald Trump’s second term. ‘Historically, whenever economic uncertainty spikes, gold prices follow suit,’ he added.
While gold steals the spotlight, other commodities have also experienced significant price movements. From the writer’s observation, cocoa surged to a 50-year high in 2024, with prices reaching US$12,906 per tonne in December 2024, primarily attributed to adverse weather conditions and underinvestment in major cocoa-producing regions. As of March 20, 2025, cocoa prices stood at US$7,746.3 per tonne, indicating a slight decrease but remaining elevated compared to historical levels.
Oil prices have also been volatile. On March 20, 2025, Brent crude edged up
0.2 per cent to US$71.78 per barrel, driven by instability in the Middle East and China’s stimulus measures to bolster its economy. Despite these fluctuations, oil prices have not mirrored the unprecedented surge observed in gold.
Coffee prices have shown significant volatility, reflecting shifts in global supply chains and changing consumer demand patterns. The price of Arabica beans reached nearly US$3.50 per pound in December 2024, marking its highest level since 1977, marking a staggering 83 per cent increase in 2024.
In the palm oil sector, a significant commodity for Malaysia, palm oil has experienced price fluctuations in recent years. After reaching an all-time high of RM7,268 per tonne in March 2022, palm oil prices have decreased by RM246 per tonne, or 5.54 per cent, since the beginning of 2025. The decrease is largely due to adjustments in global supply and demand and evolving trade policies that have impacted major palm oil markets.
For Malaysia, the gold rush has both winners and losers. On th
e bright side, gold jewellery remains a cultural staple, especially among women and those leveraging Ar-Rahnu (Islamic pawn broking), said Mohd Afzanizam. ‘The rising popularity of gold-based investments has also driven more Malaysians to diversify their portfolios.’
Malaysia Gold Association (MGA) president Datuk Wira Louis Ng said the rising gold prices have had a mixed impact on Malaysia’s jewellery industry. ‘However, the export sector has benefited significantly from the price surge, with gold jewellery exports reaching an estimated RM7.7 billion in 2024, driven by strong demand from key markets such as Singapore, the United Arab Emirates, Hong Kong, Japan and Australia.’
Ng further said that the surge in gold prices has reinforced its appeal as an investment asset. ‘Retailers have responded by introducing smaller investment gold bars, such as 0.25-gram (g), 0.5 g, and 1 g, to cater to first-time investors or those looking for lower-cost entry points into gold investment.’
Some speculators predicted t
hat gold would soar to US$5,000 per troy ounce by year-end, but Mohd Afzanizam remained cautious, saying that value may take three to five years to rise. ‘A more realistic target would be between US$3,000 per troy ounce and US$3,500 per troy ounce in the next few years.’