Gold Price Hits $5,000 : How Malaysian Investors Can Profit the Shariah-Compliant Way

Global gold prices have surged to a new record high, surpassing $5,000+ per ounce on Monday, continuing a historic rally that saw the precious metal gain 64% throughout 2025.

Read our previous article: Gold Price Breaks Past US$4,000 — A Signal That Investors Are Shifting Towards Safe-Haven Assets

This sharp increase has been driven by a (Perfect Storm) of economic factors: geopolitical tensions, expectations of U.S. interest rate cuts, and aggressive gold purchases by central banks worldwide to reduce dependence on the U.S. Dollar.

For investors in Malaysia, the main question is no longer "Why is the price going up?", but rather "How can I invest safely and in a Shariah-compliant manner?".

Unlike Western markets that heavily utilise derivative instruments (which are not Shariah-compliant), Bursa Malaysia and local financial institutions offer alternatives that are transparent, backed by physical gold, and certified halal. Here are 4 best ways for you to start investing:

1. Bursa Gold Dinar (BGD) — The Easiest & Most Modern Way

Most investors are more familiar with the "Spot Market" in London, but in Malaysia we have a far easier and Shariah-compliant alternative — Bursa Gold Dinar.

• What it is: An official digital gold investment app from Bursa Malaysia.
• Shariah Advantage: Every gram of gold you purchase is fully backed by physical gold and stored in a secure vault. There are no elements of Riba (interest) or empty speculation.
• How to Invest: You can start with as low as RM10 through the app. Most interestingly, once your balance reaches 4.25g, you can redeem it as a physical gold dinar coin delivered straight to your doorstep.
  
  You can refer to the Bursa Gold Dinar website.

2. Gold ETF (TradePlus Shariah Gold Tracker)

Futures markets like COMEX in New York may be too risky and complex. The best alternative on Bursa Malaysia is through an Exchange Traded Fund (ETF).

• Stock Code: 0828EA (TradePlus Shariah Gold Tracker).
• How It Works: This is the only Shariah-compliant gold ETF in Malaysia. When you buy units of this stock, you are essentially buying a stake in actual physical gold. Its price performance moves in tandem with global gold prices (LBMA).
• Why Choose This: Ideal for investors who already have a CDS (stock) account. Management costs (spread) are usually lower compared to buying physical gold from a regular shop, and it is highly liquid (you can buy and sell during stock market hours).

You need a CDS Account to purchase this gold investment instrument. If you don''t have one yet, open a CDS account with MPLUS today.

3. Bank Gold Investment Accounts (Shariah-Compliant)

Many banks in Malaysia now offer gold accounts that comply with the Commodity Murabahah structure.

• Examples: Maybank Islamic Gold Account (MIGA-i), CIMB e-Gold Investment Account-i, or Bank Muamalat Gold-i.
• Key Difference: Unlike old conventional accounts, these accounts allow physical ownership. You can buy in grams starting from as low as RM10, and prices are updated in real-time according to the international market.

4. Physical Gold (Bars & Coins)

For conservative investors, nothing beats the satisfaction of holding gold in your own hands.

• Popular Options: Kijang Emas (issued by Bank Negara Malaysia), Public Gold coins, or jewellery (916 gold). Refer here: Kijang Emas Gold Bullion Coin
• Tip: For investment grade purposes, make sure you buy 999.9 purity gold as the spread (depreciation) is lower compared to decorative jewellery.

  

What Is Actually Driving Gold Prices Right Now? (Fundamental Analysis)

Why has the gold price surged all the way to $5,000 (RM20,000+) per ounce? Is this merely "panic buying" or are there solid reasons behind it?

As smart investors, we need to understand that gold prices don''t move randomly. They are driven by 4 main engines. Think of the gold market like a car, and these 4 factors are what''s pressing down on the accelerator:

1. Geopolitical Fear Factor

In simple terms: When the world becomes chaotic, gold becomes more expensive.

Reuters reports cite tensions between major world powers (such as U.S. trade tariffs and global political issues).

• The Logic: Institutional investors (like international banks) are very afraid of losses. When they see risks of war or political disputes, they sell stocks (which risk falling) and buy gold.
• Why: Gold is considered "Wealth Insurance". No matter which country goes bankrupt or which currency collapses, gold retains its value. So, as long as world news is filled with conflict, gold prices are unlikely to drop.

2. U.S. Interest Rates (The Rival to Fixed Deposits)

This is the most important factor. The U.S. Federal Reserve (The Fed) is expected to lower interest rates.

• The Logic: Imagine you have some extra money. If the bank offers high interest (dividends), you''d keep your money in the bank, right? But if the bank lowers the rate to very low levels, keeping money in the bank becomes "not worth it".
• The Effect: Investors will withdraw money from banks and buy gold. Although gold doesn''t pay monthly dividends, the potential for price appreciation is far higher compared to the low bank interest. This is what we call the concept of "Opportunity Cost" becoming lower.

3. "Big Whales" Are Buying (Central Banks)

The main players right now are no longer retail investors like us, but the "Whales" — Central Banks of major nations such as China, India, and Poland.

• The Logic: These nations are racing to accumulate gold because they want to reduce dependence on the U.S. Dollar (the De-dollarization trend).
• The Effect: When these big "sharks" keep buying non-stop for national reserves, the gold supply in the market decreases (supply & demand). When supply is low but demand is high, prices automatically surge. This creates a solid "floor price".

4. Currency Factor (Ringgit vs USD)

For us in Malaysia, gold prices have an extra "turbo boost".

• The Logic: Global gold prices are traded in U.S. Dollars (USD).
• The Effect: As Malaysians, we benefit doubly when investing in gold right now:
  1. First, the global gold price itself is on the rise.
  2. Second, gold acts as a Hedge. If the value of fiat money is eaten by inflation, gold preserves your purchasing power.

The current market is not driven by empty speculation. It is driven by structural changes in the global economy. Big investors are shifting from holding "paper money" to holding "physical assets".

For new investors in Malaysia, the message is very clear: Gold is no longer just jewellery — it is a financial defence tool that should be in your investment portfolio, even if just a small allocation.

Geopolitics & Its Impact on Stocks: Opportunity or Risk?

Geopolitical tensions such as wars, economic sanctions, or trade conflicts can rapidly alter the investment landscape.

Read Our Article: Geopolitics as a Catalyst in Stock Trading: An Analysis

Oil prices, currencies, and investor sentiment are easily affected, impacting both global and local stocks.

How do you capitalise on this opportunity?

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FAQ — Gold Investment in Malaysia (Shariah-Compliant)

Is gold investment halal in Islam?

Yes, gold investment is permissible in Islam as long as it follows Shariah principles. The key conditions are: the transaction must involve actual ownership (no speculation), the gold must be real and properly stored, and there must be no elements of riba (interest). Instruments like Bursa Gold Dinar and TradePlus Shariah Gold Tracker are certified Shariah-compliant by the Securities Commission Malaysia.

What is the cheapest way to start investing in gold in Malaysia?

The most affordable entry point is through Bursa Gold Dinar (BGD), where you can start with as low as RM10. Alternatively, bank gold investment accounts like Maybank MIGA-i also allow purchases starting from small amounts. For stock market investors, the TradePlus Shariah Gold Tracker ETF (0828EA) can be purchased through any CDS account.

Why is the gold price so high in 2026?

Gold prices have surged past $5,000 per ounce due to four main factors: geopolitical tensions driving safe-haven demand, expected U.S. interest rate cuts reducing the opportunity cost of holding gold, aggressive buying by central banks (China, India, Poland) for de-dollarization, and currency dynamics where a weaker Ringgit amplifies gains for Malaysian investors.

Should I buy gold now or wait for the price to drop?

While timing the market is difficult, the fundamental drivers supporting gold prices — geopolitical uncertainty, de-dollarization trends, and central bank buying — are structural and long-term in nature. Many financial advisors suggest dollar-cost averaging (buying small amounts regularly) rather than trying to time the perfect entry point. Even a small allocation of 5-10% of your portfolio in gold can serve as effective financial insurance.