Gold market stays strong
He noted that without the stronger currency, domestic gold prices would have been significantly higher.
Even so, Siow said elevated prices have not dampened consumer demand, particularly during the year-end festive period, which is traditionally a peak season for gold retailers.
"Higher prices do not seem to be affecting demand for gold jewellery or investment products such as wafers and bars," he told Business Times.
He added that retailers continue to enjoy decent business conditions overall.
On investor behaviour, Siow observed that while some informed consumers are buying gold as a hedge against economic uncertainty, a sizeable portion of buyers appear to be driven by fear of missing out.
This trend, he said, is especially evident among younger consumers who are increasingly entering the gold market amid rising prices.
Despite prices being close to historical highs, Siow said gold still has a role to play as an investment, particularly given ongoing global uncertainties.
He noted gold's status as a safe haven and hedge against inflation, as well as continued purchases by central banks and financial institutions for strategic reserve diversification.
"Buyers should assess their personal risk appetite, but gold remains a useful investment tool, especially as a diversifier within an individual investment portfolio," he said.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said public interest in gold investment has been strong, largely because gold is viewed as a simple and familiar asset.
"Investment in gold is not complicated, and it is something that people can easily relate to. Gold is widely regarded as precious, which explains why it is often deemed a safe-haven asset," he noted.
Afzanizam said gold ownership has also supported the growth of the Ar Rahnu Islamic pawn broking segment, which has been booming as Malaysians use gold holdings to gain access to financing, particularly for working capital needs.
Rising gold prices, he said, have to some extent contributed to the expansion of Ar Rahnu businesses, as gold holders benefit from price appreciation while also being able to obtain short-term financing by pawning their holdings.
He added that with continued growth, the Ar Rahnu segment could evolve into a more mature industry, but stressed that proper regulation is needed to protect the interests of all parties involved in such transactions.
On whether current price levels present a good buying opportunity, Afzanizam noted that gold prices are not linear and remain susceptible to market corrections.
"Prices of gold are never linear and they are prone to market correction. Therefore, Malaysians are advised to conduct their own due diligence before deciding to invest," he said.