Historic Breakout! Gold Price Smashes RM700 Mark

Malaysias retail gold market marked a historic moment at the start of the new year, with prices climbing to record levels following a surge in global gold prices. From Tuesday (Jan 13), the retail price of 999 fine gold has been raised to RM700 per gram, while 916 gold has increased to RM650 per gram.

According to the latest pricing released by Tomei (TOMEI, 7230, Main Market Consumer), the retail price of 999 gold rose by RM20, from RM680 to RM700 per gram. At the same time, the price of 916 gold also climbed by RM20, from RM630 to RM650 per gram.

Local gold prices have been on a strong upward trend throughout last year, recording a cumulative increase of nearly 50 percent. The latest adjustment reflects continued strength in the global gold market, driven by rising geopolitical risks and shifting monetary policy expectations.

International spot gold prices surged to a new record high on Tuesday, briefly touching US$4,601 per ounce (approximately RM18,694), amid escalating protests in Iran and heightened geopolitical tensions. The unrest has fuelled concerns over regional stability, pushing investors towards safe-haven assets such as gold.

As of 5.30pm Malaysia time, spot gold was trading at US$4,596 per ounce (around RM18,674), up 1.92 percent for the day.

Adding to golds momentum, a recent US jobs report released last week showed employment growth falling short of market expectations. According to Bloomberg, this has strengthened investor expectations that the US Federal Reserve will continue cutting interest rates to support economic growth.

Markets are currently pricing in at least two more rate cuts this year. The Federal Reserve had already implemented three rate cuts in the second half of last year. In a lower interest rate environment, gold — which does not offer yield — has become increasingly attractive to investors.

Meanwhile, the deadly protests in Iran have raised speculation about potential political instability, further increasing demand for precious metals as a hedge against uncertainty. The situation has also added volatility to global energy markets, reinforcing golds role as a preferred safe-haven asset during times of heightened geopolitical risk.