24/03/2026

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TUESDAY | MAR 24, 2026

Sustained physical gold demand seen

o Habib Jewels optimistic on outlook for precious metal but cautious about digital segment, says many investors still prefer to hold tangible assets

PETALING JAYA: Jewellery retailer Habib Jewels is seeing sustained demand for physical gold despite elevated prices and global uncer tainties, even as it adopts a cautious stance towards the growing popu larity of digital gold investments. Group executive chairman and CEO Datuk Seri Meer Habib said demand has remained resilient in recent weeks, supported by festive spending and increasing interest in gold as a store of value. “The weekend before Raya, we had probably the busiest ever crowd in all our shops throughout the country. Demand was super strong, with some items even sold out,” he said, adding that the Hari Raya Aidilfitri season continues to drive jewellery purchases. While jewellery remains the core business, Meer noted a clear shift in consumer behaviour, with invest ment-driven purchases rising signi ficantly. “The buying of investment gold has improved very significantly. It has gone up tremendously, although jewellery demand is still much higher overall.” He added that this trend reflects growing consumer awareness of gold’s role as a hedge against eco nomic uncertainty. Increasingly, buyers are purchasing gold not only for adornment but also as a form of wealth preservation, particularly amid volatile financial markets. Meer said the preference for physical gold remains strong, even as digital gold platforms gain traction. Many consumers, he noted, continue to value the security and tangibility of holding physical assets, especially during times of heightened uncertainty. Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

“A lot of digital gold products should be backed by physical gold but, in some cases, they are not. That can be risky,” he said. He pointed out that discrepancies between digital and physical markets have become more evident, parti cularly when demand for physical commodities outpaces supply. “There are situations where physical demand is extremely high, and sometimes supply is tight, even though digital trading suggests otherwise.” As a result, Habib is taking a measured approach towards digital expansion, focusing on ensuring transparency and proper asset backing. The group is studying a hybrid model that would combine digital convenience with the assurance of physical gold reserves. “If we were to do it, we would ensure it is properly backed and that customers can choose between cash or physical gold,” Meer said. Beyond investment trends, the group continues to emphasise its physical retail presence, under scoring the importance of customer experience in high-value purchases. Meer said many customers still prefer to visit stores, particularly when buying jewellery for special occasions. “When customers want to buy something special, they still want the experience. We are more like consultants than salespeople, guiding customers to make informed decisions.” Habib’s retail strategy reflects this approach, with continued invest ment in brick-and-mortar outlets alongside its digital channels. The company recently expanded into new locations and is set to open its largest outlet to date within the next month.

Meer says buying of investment gold has improved very significantly, reflecting growing consumer awareness of the precious metal’s role as a hedge against economic uncertainty. – BY ADIB RAWI YAHYA/THESUN

global market sentiment. Meer said while the conflict has contributed to fluctuations in gold and currency markets, Malaysian consumers remain relatively resi lient. “With what’s happening globally, there is always uncertainty. But Malaysians are still in a relatively better position, and gold remains reasonably priced for consumers.” He added that the interplay between rising oil prices, currency movements, and interest rate expectations has created a complex environment for gold, with short term consolidation masking under lying strength. “Fundamentally, demand for gold is still very strong. During uncertain times, people will always turn to gold as a safe haven,” Meer said.

because there are too many uncer tainties.” He added that central bank activity continues to underpin the gold market, with many countries increasing their gold reserves as part of a broader shift away from reliance on the US dollar. “There has been a move towards dedollarisation. Countries are buying more gold as reserves instead of holding US dollars, and that has supported prices,” he said. However, Meer cautioned that external factors such as oil prices could influence this trend, as higher energy costs may affect how governments allocate their financial resources. Against this backdrop, ongoing geopolitical tensions, particularly in the Middle East, continue to shape

“We want to ensure that when we open a store, we provide the full experience. Our biggest ever store will be opening very soon,” Meer said, adding that expansion decisions are driven by customer demand and feedback. On pricing, he said the group strives to maintain reasonable margins despite fluctuations in gold prices, in line with its long-standing business principles. He noted that maintaining customer trust is key to sustaining long-term demand. Looking ahead, Meer expects gold prices to trend higher over the next six months, although short-term movements are likely to remain volatile. “By the end of the year, we expect gold prices to go up. But in the near term, it will be up and down

Malaysia on alert amid regional sell-off as oil shock rattles markets PETALING JAYA: Malaysia is bracing for potential spillover risks as a broad sell-off sweeps across Asian markets, driven by rising oil prices and escalating tensions in the Middle East, even as local markets were shut during public holidays in conjunction with Hari Raya Aidilfitri. index has fallen sharply this month, down more than 11%, putting it on track for its worst performance since late 2022. The decline reflects growing unease over the impact of prolonged conflict in the Middle East, particularly on energy supplies and costs. report said. Analysts note that much of emerging Asia is vulnerable because of its reliance on imported energy. The surge in oil prices is not only pushing up fuel costs but also affecting fertiliser supply, which could feed into higher food prices across Southeast Asia if the conflict drags on. equally fragile. The Thai baht has weakened to a 10-month low, while the Indian rupee slipped to a record low against the US dollar. The Philippine peso, too, is hovering near historic lows, under scoring the strain on emerging market currencies. buffer. Higher oil prices could support government revenues and certain sectors of the economy, even as businesses and consumers face rising costs.

Looking ahead, the Reuters report said much will depend on how the geopolitical situation evolves. Any further escalation could deepen volatility across markets, while a stabilisation in oil prices may help ease pressure on currencies and equities. For now, the region – including Malaysia – remains on edge, caught between the upside of stronger commodity prices and the downside of a more uncertain global economic outlook.

Market watchers say foreign funds have been steadily exiting key Asian markets since the conflict began, particularly in North Asia. Large-scale selling by global investors and hedge funds has added to the downward pressure, as concerns grow over prolonged instability, the report said. Still, Malaysia’s position as an energy producer offers a partial

Regional sentiment has turned cautious, with investors pulling back from equities and currencies across emerging Asia. According to Reuters, stocks in the region have come under sustained pressure, while currencies weakened as oil prices held above US$110 (RM432) a barrel, raising concerns over inflation and economic stability. The MSCI Emerging Markets Asia

For Malaysia, the immediate impact may be less visible due to market closure, but the broader implications are harder to ignore. As a trading nation with deep links to regional supply chains, the country remains exposed to shifts in investor sentiment and imported inflation, especially through higher fuel and food prices, the Reuters

Across the region, the pressure is already evident. South Korea’s stock market saw steep losses, while its currency slid to levels not seen since the global financial crisis. Taiwan and Singapore also recorded declines, with investors increasingly moving to safer assets. Currency markets have been