KUALA LUMPUR: Tomei Consolidated Bhd is benefiting from a short-term uplift in margins amid elevated gold prices.
However, the group remains cautious on its full-year earnings outlook, citing continued volatility in gold prices as well as a measured view on demand conditions and cost pressures.
Group managing director Datuk Ng Yih Pyng said the group’s cautious stance reflects the cyclical and volatile nature of gold, noting that earnings performance is influenced by factors beyond sales alone.
“In the short term, I must admit that the sharp increase in gold prices does help our earnings. However, gold prices move up and down, and over time, they tend to even out,” he told reporters at the Tomei Chinese New Year 2026 media launch today.
Commenting on the sustainability of the gold rally, Ng said gold prices, like that of other commodities, typically move in cycles rather than follow a prolonged upward trend. “Anything that rises will eventually correct. Historically, gold prices have rallied strongly, eased back, and then recovered again. That is the nature of commodities.”
That said, Ng noted that structural factors continue to underpin gold prices, particularly sustained buying by central banks globally. “Central banks are not traders. They purchase gold as a strategic investment, and as long as these holdings are not sold, prices remain supported.”
He said geopolitical uncertainty and rising investor interest have reinforced the bullish sentiment towards gold.
Ng cited analyst forecasts projecting gold prices of between US$5,000 and US$5,500 (RM20,325 and RM22,357) per ounce in 2026, compared with around US$4,450 per ounce currently, which is already near record levels.
“From a business perspective, we would prefer gold prices to be more stable and less volatile, but that is beyond our control,” he said.
Gold has surged sharply over the past year, rising by about 60% to 64% in 2025, marking its strongest annual performance since 1979. By early January 2026, spot gold was trading at around US$4,400 per ounce, close to record highs.
For context, gold spent much of the early 2020s trading below US$2,500 per ounce before the latest rally. Looking ahead, major banks expect prices to remain elevated in 2026, albeit with potential volatility.
HSBC forecasts gold could reach around US$5,000
per ounce in the first half of the year, while cautioning that prices may be subject to corrections. Morgan Stanley expects gold to rise further to about US$4,800 per ounce by the fourth quarter of 2026.
Tomei yesterday launched its 2026 Chinese New Year collection themed “The Bountiful Year of the Horse”, inspired by the legendary Silk Road and its iconic symbol, the horse, which represents success, endurance and abundance.
Ng said the Silk Road horse reflects the aspirations of 2026, which also marks Visit Malaysia 2026, a year he believes will bring broad-based prosperity.
“The Silk Road was a conduit for wealth, trade and opportunity. It symbolises how perseverance and steady effort can lead to lasting prosperity, which is the spirit we hope to share with our customers in the Year of the Horse,” he added.
