Gold to RM700 per gram hinges on forex, not just bullion prices: Tomei chief
KUALA LUMPUR: Gold prices have retreated from recent highs, and a move to RM700 per gram by year-end would depend on multiple factors, including the ringgit's performance against the US dollar, according to Tomei Consolidated Bhd.
Group managing director Datuk Ng Yih Pyng said bullion is likely to trade within a relatively tight range in the near term as global markets await clearer direction.
While some analysts have projected gold prices could reach RM700 per gram by year-end, Ng said the outcome would depend not only on global gold prices but also foreign exchange (forex) movements.
"I think gold prices should trade within a range of plus or minus around US$4,200 to US$4,800. To reach RM700 per gram, we also have to look at the ringgit-dollar exchange rate because gold is priced in US dollars.
"Given that prices were much higher earlier this year, RM700 per gram is quite likely," he told reporters in a press conference after the company's 21st annual general meeting (AGM) here today.
Gold prices are expected to remain volatile but elevated in the near term, as investors continue seeking safe-haven assets amid geopolitical tensions and economic uncertainty.
Against this backdrop, Tomei is seeing growing interest in gold investment products as consumers increasingly turn to gold as a store of value.
Ng said demand for investment-related products such as gold wafers, gold coins and gold bars has risen significantly in recent years.
"Because of wars and uncertainties, we are seeing more customers investing in gold," he said.
According to Ng, consumers today are highly sensitive to gold price movements as information is readily available online, allowing them to react more quickly to market developments.
Although higher prices have prompted some investors to realise gains, he said overall buying activity remains strong.
"There are more purchases. Gold investment is generally a long-term proposition. It is not a case of buying today and selling tomorrow," he said.
Ng believes the market still offers substantial growth potential as many consumers have yet to begin investing in gold.
To capture younger investors, the group has been promoting Gold Now, its digital gold platform that was soft-launched ahead of Chinese New Year.
While digital gold currently contributes less than one per cent of group sales, Ng said customer response has been encouraging.
"The sales value compared with our overall turnover is still very small, but it is growing at a healthy rate," he said.
He noted that younger consumers increasingly view gold as an accessible investment asset, even though initial purchase amounts tend to be relatively small.
"The purchasing value for this group may not be large initially, but they can accumulate over time. The important thing is that they start," he said.
Ng added that convenience remains a key driver of adoption among younger investors, making digital gold an increasingly relevant offering.
Meanwhile, chairman Raja Tan Sri Aman Raja Haji Ahmad said the digital gold initiative was introduced to make gold ownership more accessible, particularly among younger Malaysians.
He said gold has long served as a store of value and is becoming increasingly relevant as consumers look for alternatives to traditional currency-based savings.
"Just like people have savings accounts in ringgit or other currencies, they can now have savings in real gold," he said.
Raja Aman added that growing awareness of gold as a savings and investment option has been fuelled by concerns over currency volatility and broader economic uncertainty.