KUALA LUMPUR - Malaysia’s gold price is on track to surpass RM700 per gram going forward, supported by a softer US dollar and as the ringgit continues to strengthen, said analysts.
SPI Asset Management managing partner Stephen Innes said higher domestic gold prices reflected global fiscal stress and currency dynamics more than any single geopolitical event.
"For Malaysia, that dynamic matters directly. If elevated gold prices are sustained alongside a softer US dollar or renewed upward pressure on the ringgit, local prices could plausibly move toward the RM700 per gram range,” he told Bernama.
The physical price of gold today, as of 9.30am, stood at RM627.39 per gram, up RM15.09 from RM612.30 at 5pm last Friday.
The ringgit traded at 3.9665 against the US dollar after the lunch break today, its highest level since May 22, 2018, when it stood at 3.9655.
Meanwhile, the price of gold on the New York Comex exchange on Sunday exceeded US$5,000 per troy ounce for the first time in history.
The price of February gold futures on the exchange rose by around US$40 from the previous close, or 0.8 per cent, reaching US$5,025 per troy ounce.
The previous record for gold was about US$4,525.16 per troy ounce, set on Dec 23, 2025.
Globally, Innes said the primary driver behind the gold price surge is the growing risk embedded in government balance sheets.
He added that markets are reacting mainly to the magnitude of global debt and the increasing reliance on currency debasement as a tool to manage it. He said instruments such as gold futures are primarily used as a hedge for physical gold positions, whether short or long, and are deliverable.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid agreed that the surge in gold price could reach RM700 per gram this year as traders and investors increasingly turn to precious metals as safe-haven assets amid heightened market uncertainties.
"Perhaps because the precious metals are extremely valuable and their values are not influenced by political drama.
"That makes precious metals such as gold really stand out as a place to seek refuge when the market becomes highly volatile,” he said.
He noted that the bullish trend of gold has continued this year, climbing 17.6 per cent to US$5,077.79 per ounce.
"Other precious metals are also on the rise, such as silver, platinum, and palladium, which increased by 47.5 per cent, 34.6 per cent, and 25.6 per cent, respectively, to US$105.699, US$2,773.1 and US$2,034.96 per ounce,” he said. - BERNAMA