In early April 2025, the United States, under President Donald Trump, announced significant tariff increases targeting multiple countries, notably imposing a 24% reciprocal tariff on Malaysian imports and a 34% tariff on Chinese goods, both set to take effect on April 9. These measures are part of a broader strategy aimed at addressing trade imbalances and protecting domestic industries. citeturn0news20

Immediate Market Reactions


The announcement of these tariffs led to significant volatility in global financial markets. Major stock indices experienced sharp declines due to escalating trade tensions and concerns over potential economic slowdowns. Investors, seeking safe-haven assets amid the uncertainty, turned their attention to gold. citeturn0news20

Gold Prices Surge

In response to the escalating trade tensions, gold prices experienced a notable surge. As of April 8, 2025, the price of gold stood at 432.37 Malaysian Ringgits (MYR) per gram, up from MYR 430.02 the previous day. Similarly, the price per tola increased to MYR 5,043.07 from MYR 5,015.66. citeturn0search14

Retail Gold Prices at Tomei

Tomei, a prominent Malaysian jeweller, provides live quotes for gold jewellery prices, which are updated regularly. As of April 8, 2025, the retail prices are:

  • 999 Gold Jewellery: MYR 500.00 per gram

  • 916 Gold Jewellery: MYR 465.00 per gram

  • 750 Gold Jewellery: MYR 420.00 per gram

  • 375 Gold Jewellery: MYR 215.00 per gram

These retail prices are influenced by international gold prices, currency exchange rates, and additional costs such as craftsmanship and design.

Gold Price Forecast

Analysts have provided various forecasts for gold prices in the near to medium term:

  • HSBC: Revised its average gold price forecast for 2025 to $3,015 per ounce, citing increased geopolitical tensions and economic uncertainties. citeturn0news18

  • Goldman Sachs: Predicts that gold prices could reach $3,000 per ounce by the end of 2025, driven by factors such as expected U.S. Federal Reserve interest rate cuts and growing uncertainty. citeturn0news34

  • J.P. Morgan Research: Forecasts indicate that gold prices could rise toward $3,000 per ounce in 2025, with a fourth-quarter average of $2,950 per ounce. citeturn0search11

These forecasts suggest a bullish outlook for gold, influenced by ongoing geopolitical tensions, trade policies, and economic uncertainties.

Factors Influencing Gold Prices

Several key factors have contributed to the recent movements in gold prices:

  1. Geopolitical Uncertainty: The imposition of tariffs has heightened concerns about a global trade war, prompting investors to seek safe-haven assets like gold. citeturn0news35

  2. Market Volatility: The tariffs have led to significant volatility in financial markets, with investors moving away from riskier assets toward more stable investments such as gold. citeturn0news35

  3. Central Bank Purchases: Robust purchases of gold by central banks aiming to diversify reserves away from the U.S. dollar have provided additional support to gold prices. citeturn0news35

Implications for Malaysia and China

The tariffs pose challenges for both Malaysia's and China's export sectors, potentially affecting key industries and the broader economies of both countries. The Federation of Malaysian Manufacturers has expressed concerns about the impact on exports and employment. Similarly, Chinese officials have voiced apprehensions regarding the potential slowdown in trade and its ripple effects on the global supply chain. Additionally, fluctuations in gold prices may influence investment strategies and consumer behavior within these countries.

Conclusion

The U.S.'s imposition of tariffs on Malaysian and Chinese imports has had immediate and significant effects on global markets, particularly influencing gold prices. As investors seek stability amid escalating trade tensions, gold continues to serve as a preferred safe-haven asset. The situation remains dynamic, and its long-term implications for the economies of Malaysia, China, and the global financial landscape warrant close monitoring.

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