Soaring gold prices spark trading frenzy at Malaysian jewellery stores

Azlan Mohamed Shanavas, a branch executive at Chantique Jewellery, said its parent company Habib Jewels has recorded a 20% rise in total sales this year compared with 2024. Founded in 1958, Habib is one of Malaysia’s longest-standing retailers.

"We get approximately 50 to 100 customers per showroom per day," he told The Straits Times, adding that most customers are selling to profit from price gains.

"Last year, it was mainly busy on weekends, but now even weekdays are packed. People come in after work or teaching."

A vendor arranges gold chains displayed at VJ Gold and Diamond jewellery shop in Kuala Lumpur, Malaysia, Aug. 10, 2020. Photo by Reuters

Staff at an outlet of another jewelry chain in Kuala Lumpur’s Bukit Bintang shopping district said demand for the metal has stayed strong amid rising prices.

"People keep buying, and they are also still buying for weddings," one employee said, adding that gold bars of 1-100 grams are also selling well in addition to jewelry. "People are scared the price will go up again."

The same staff member said tourists from China have also been purchasing gold at the store.

In Malaysia, gold has surged 44.9% over the past year, trading at RM540.93 (US$130.9) per gram on Monday, according to BusinessToday.

On the global market, spot gold stood at $4,111.86 per troy ounce (US$132.2 per gram) the same day. The metal has climbed 55% this year, reaching a peak of $4,381.22 per troy ounce last month. While prices have retreated from record highs, they remain well above historical norms.

Globally, the surge in prices has been driven by economic and geopolitical concerns, rising inflows into exchange-traded funds and expectations of further U.S. interest rate cuts. Even after some recent consolidation, UBS still raised its mid-2026 gold target by $300 to $4,500 per ounce, according to Reuters.

Nur Hashim, a 37-year-old information technology executive, was shocked by how much the metal had climbed when she joined her brother on a wedding shopping trip in September. The bracelet he picked out for his fiancée cost around RM3,600, much more than the under RM2,000 Nur had paid a few years ago for a similar piece.

Spurred by the price surge, she went back the next month with her mother and sister, bringing about 40 grams of gold to trade.

"When I traded in my gold (at the same store) in March, I got around RM275 per gram, but in October I got around RM478 per gram," she said.

"I was quite surprised with the price now. It made me ask myself, ‘Why didn’t I buy more back then?’ Three years ago, I bought a bracelet for around RM4,500, but now the same design is about RM8,000."

Beyond traditional jewelry stores, digital gold investment platforms in Malaysia are also seeing growing activity, as reported by The Malaysian Reserve.

A banker in Kuala Lumpur noted that his clients show more interest in the metal and check prices weekly whenever market conditions turn uncertain, even when they do not plan to buy.

Meer Habib, Habib Jewels’ executive chairman and a certified gemologist, said gold has consistently served as a safe-haven asset during periods of economic uncertainty and geopolitical tension.

"In Malaysia generally, gold is purchased both for adornment and as an investment," he told The Star. "Unlike other products, where higher prices reduce demand, with gold we see the opposite, people buying more despite rising prices, and showing strong confidence."

He also noted that the option to trade in old jewelry for new ones has helped maintain demand.

In Penang’s George Town, a jeweler has reported steady sales throughout 2024 and 2025, even as customers at other locations complained about rising rates. He noted that customers may cut back on other spending, but they rarely skip buying gold.

"As some Malaysians remain unbanked, gold serves as a form of savings, and they would sell back the gold to fund Haj pilgrimages or children’s education, making jewelers almost like a bank for the community," Habib noted.