PETALING JAYA: Malaysians who own gold should focus on why they hold it and for how long, rather than react to weekly price moves, says a local gold dealer.
Abdul Razak Gold House Kuala Lumpur managing director Mohd Razalie Abdul Rasul said a clear view of their financial goals will help consumers decide whether to buy, hold or sell as the market swings.
He said the current decline reflects movements in interest rates and oil prices.
Mohd Razalie reminded Malaysians that international prices do not directly set retail prices, as the ringgit, product type and seller spreads also matter.
He said, “Gold is having a difficult week. After plunging on Sept 28, spot gold fell to around US$4,150, its lowest level since Aug 5. By Sept 29, it was trading near US$4,100 after a drop of about 4% in the previous session.
“Other providers showed prices hovering between roughly US$4,150 and US$4,165 on Tuesday, so the exact level depends on the source and the hour.
“What is consistent is the direction. Prices stayed under pressure. This is a roughly 26% decline from the record of US$5,597.23 on Jan 29.”
Mohd Razalie said the main pressure comes from interest rates. Rising oil prices have fuelled inflation worries and strengthened expectations that rates will stay higher for longer, while a firm US dollar has also weighed on gold.
The benchmark 10-year US Treasury yield is at its highest level since 2007.
Markets saw about a 70% chance of another US Federal Reserve (Fed) rate rise in October earlier this week, following last month’s increase. That fell to roughly 40% after softer-than-expected US inflation data on Wednesday, according to CME FedWatch.
“Gold pays no interest, so when yields rise, cash and bonds become more attractive by comparison,“ Mohd Razalie said.
He added that uncertainty over US-Iran negotiations is keeping oil prices high, which in turn keeps inflation worries alive and adds pressure on the Fed.
Mohd Razalie stressed that gold is not in free fall.
He noted that central banks bought 289 tonnes in the second quarter, a record for that quarter. A weak first quarter, however, left first-half buying at its lowest since 2022.
The World Gold Council (WGC) reported that bar and coin investment was broadly steady from a year earlier at 307 tonnes in the quarter, though well below an exceptionally strong first quarter. Gold exchange-traded funds (ETF) saw net selling of 45 tonnes.
The WGC said the LBMA PM gold price hit a low of US$4,001.80 on June 25, so the US$4,000 level has been tested before this year.
The LBMA Gold Price PM is the benchmark price set by auction, administered by the London Bullion Market Association (LBMA), at 3pm London time each trading day. It is widely used as a global reference for trading, valuation and settlement.
According to Trading Economics, gold is still up about 8% over the past 12 months.
Mohd Razalie said Malaysians should also watch the ringgit, as local buyers pay in the domestic currency.
The US dollar traded at around RM4.08 in late September, compared with about RM4.21 in early October 2025.
A stronger ringgit lowers the local cost of gold even when international prices do not move.
At RM4.08 to the US dollar, Mohd Razalie said, gold at US$4,100 to US$4,150 an ounce works out to about RM16,700 to RM16,900 an ounce, or RM538 to RM544 per gram of pure gold.
However, these figures are international prices converted into ringgit, not actual retail prices.
Banks, gold dealers and jewellers add their own spreads or premiums, and jewellery prices also include workmanship charges, he said.
Mohd Razalie said buyers have been adapting, with demand shifting toward lighter jewellery and smaller investment-grade products such as small bars, wafers and coins. Many are buying in smaller stages rather than committing to large quantities at once.
A falling gold price should prompt questions, not reactions, Mohd Razalie said.
“For consumers, the important question is not simply whether gold is going up or down this week. It is why you own it, or want to own it, and over what time frame.
“What we are seeing today is a market reacting to interest rates and oil, not a market that has stopped being used as a store of value. Those are two different things, and it is important not to confuse them.”
He continued, “A lower international price does not automatically mean a lower price at the counter. The ringgit, the product and the seller’s spread all change what a Malaysian actually pays or receives.
“History shows that gold can experience significant corrections even during a longer-term upward cycle, and equally, that a fall does not tell us how long it will last.”
Mohd Razalie cautioned that falling prices can tempt people to act quickly, in either direction.
“Consumers should be aware of a few things. Short-term moves are volatile and can reverse quickly. Every purchase carries a spread between the buying and selling price, so the gap matters as much as the headline rate.
“Jewellery, bars and coins are different products with different premiums and resale outcomes. Liquidity and buyback terms vary by seller.
“Physical gold requires secure storage, while gold accounts carry provider considerations. The purpose, whether adornment, wealth preservation or long-term planning, should drive the choice more than the daily price,“ he said.
Looking ahead, Mohd Razalie said there are scenarios to watch, not a prediction. If inflation stays high and the Fed keeps tightening, gold could stay under pressure or drift lower.
“If oil prices ease and rate expectations soften, the downward pressure could fade. If geopolitical tension and central bank buying dominate, gold may find support.
“The daily price is noise for some people and information for others. The difference is whether you have a plan. Gold rewards understanding far more than it rewards reacting,“ he said.
