Gold Stocks Surge as Bullion Hits Another All-Time High

Gold-Related Stocks on the Rise

Gold-related stocks on Bursa Malaysia rose sharply today as the safe-haven precious metal soared to yet another all-time high on concerns over the US economy and Trump tariffs.

Aumas Resources Bhd

Sabah gold mine operator Aumas Resources Bhd rose 8% or 6 sen to 81 sen before settling 7.3% higher at 80 sen, valuing the group at RM1.47 billion.

Tomei Consolidated Bhd

Jewellery retailer Tomei Consolidated Bhd was up as much as 8.3% or 13 sen to RM1.70 before closing 5.1% or 8 sen higher at RM1.65, valuing it at RM228.7 million.

Poh Kong Holdings Bhd

Fellow jeweller Poh Kong Holdings Bhd rose nearly 4% or 4 sen to RM1.05 before ending up 3% at RM1.04, giving it a market capitalisation of RM426.8 million.

TradePlus Shariah Gold Tracker

Exchange traded fund TradePlus Shariah Gold Tracker, which tracks the returns of gold, was up as much as 3.5% to RM4.15 today.

Gold Hits All-Time High

Gold surged to a record high today, trading close to the key US$3,000 (RM13,333) mark, propelled by ongoing trade war fears and expectations of a rate cut by the US Federal Reserve. Earlier in the session, it hit a record high of US$2,993.80. US gold futures rose 0.4% to US$3,004.20.

Thirteenth All-Time High This Year

The bullion has scaled 13 all-time highs so far this year and is on track for a second straight week of gains.

Global Short Squeeze in Gold

Demand for gold has intensified since the start of the Trump presidency and market observers have flagged a short squeeze on bullion in the market, as traders scurried to ship gold from Bank of England to the US to avoid Trump tariffs. The UK central bank holds in its vault in London commercial gold owned by banks and other countries’ central banks, in addition to managing the country’s own gold reserves.

Uncertain Trade Policy

In a recent note, United Overseas Bank said the increasingly uncertain and volatile nature of the Trump administration’s trade policy will likely reinforce the flow of gold bullion into the US, reinforcing the ongoing global short squeeze in gold.

Conclusion

The surge in gold prices and the corresponding increase in gold-related stocks is a clear indication of the growing demand for the safe-haven metal. With the Trump administration’s trade policy remaining uncertain, it is likely that the trend will continue in the coming weeks.

FAQs

* What is the current price of gold?
Gold is trading close to the key US$3,000 (RM13,333) mark.
* How many all-time highs has gold seen this year?
Gold has scaled 13 all-time highs so far this year.
* What is driving the surge in gold prices?
Ongoing trade war fears and expectations of a rate cut by the US Federal Reserve are driving the surge in gold prices.
* What is the global short squeeze in gold?
The global short squeeze in gold refers to the increasing demand for the metal, leading to a shortage of supply, which in turn drives up prices.