KUALA LUMPUR (March 11): Interest in gold-related counters surged as the precious metal reached a near record high of US$2,195 per oz last Friday, before paring gains to its current price of  US$2,180.50 per oz.

During early trade, leading the pack was Poh Kong Holdings Bhd, which gained 4 sen or 4.47% to 93.5 sen valuing the company at RM381.6 million, with 3.98 million shares changing hands.

Tomei Consolidated Bhd put on 10 sen or 7.46% to reach its 52-week high of RM1.44, translating into a market value of RM199.6 million, with  2.32 million shares done.

Bahvest Resources Bhd inched up 1 sen or 2.3% to 45.5 sen while Zhulian Corp Bhd gained 1 sen or 0.73% to RM1.38.

Notably, Bursa's Shariah Gold Tracker ETF put on 2 sen or 0.6% at 3.33, its highest in 52 weeks.

According to ANZ Group Holdings’ note on Monday, gold prices are buoyed by demand for haven assets amid geopolitical tensions.

“The market is pricing an early rate cut, pushing prices higher. However, don’t expect the Fed to start easing until 2H 2024. Steady rates and falling inflation increase the risk of real rates rising in the short term, which is a headwind for gold,” it said.

ANZ also noted a drive by central banks to diversify reserves has been a feature of the gold market since early 2022, adding that central banks would continue this trend amid increasing geopolitical risks.

“They bought 800 tonnes of gold over the last three quarters, which is well above our expectations. Assuming the current pace of buying continues, we upgrade our demand estimates to 1,050 tonnes from 750 tonnes for 2023 and 800 tonnes for 2024. This reduces the burden on physical and investment demand to clear the market surplus,” it said.

ANZ held its long-term positive view for gold, with prices averaging above US$2,000 per oz this year.