KUALA LUMPUR (April 8): Shares of Tomei Consolidated Bhd and Poh Kong Holdings Bhd hit new all-time highs on Monday, as gold prices extended their record rally amid speculative buying and escalated geopolitical tensions in the Middle East.

Tomei surged to a new record high of RM1.68, up 16 sen or 10.5%, with 3.79 million shares changing hands, while Poh Kong leapt 13.5 sen or 14.3% to a new high of RM1.08, with a trading volume of 8.91 million shares.

Year to date, Tomei has gained 44 sen or 35.48% while Poh Kong has advanced 21.5 sen or 24.86%. At their current prices, Tomei is valued at RM232.8 million and Poh Kong RM443.2 million.

Among other gold-related stocks, Zhulian Corp Bhd climbed five sen to close at RM1.50, while Bahvest Resources Bhd rose 2.5 sen or 4.95% to close at 53 sen.

Niche Capital Emas Holdings Bhd closed 1.5 sen higher at 15.5 sen, with its trading volume reaching a one-year high of 56.24 million shares.

The recent uptick in interest among gold stocks coincides with the current upward trend in gold prices. At the time of writing, spot gold was trading near its all-time high at US$2,327 per ounce.

The Australia and New Zealand Banking Group (ANZ) has cautioned of a retracement for gold in the short term, despite holding a positive view for the long term, as the recent rally has lifted the price of the commodity well above its forecast.

It noted that the rally has not been weakened by the pushback of expectations around the timing of rate cuts by the US Federal Reserve and that the heightened geopolitical risks are likely to keep official buying in the 750- to 800-tonne range.

“While speculators have increased their bullish bets recently, positions are not matching the intensity of the latest price rally. Moreover, disinvestment in gold-backed exchange-traded funds has been continuing,” ANZ said in a report.

“While physical gold demand has been holding up well since 2021, a sharp price rally is likely to temper discretionary buying in 2024. For jewellery demand, fewer auspicious wedding days could be a headwind,” it cautioned, adding that investment demand will remain crucial to mitigate any fall in physical demand caused by higher prices.