Export Base Price of Gold Rises 0.65%, Here’s Why

KUALA LUMPUR, 18 AUGUST 2026 —

Malaysia Gold Export Benchmark Price Rises 0.65% on Global Rate Cuts

The ministry set the gold export benchmark price at US$131,777.67 per kilogram for the period of 15–31 August 2026, up from US$130,921.50 in the first half of the month. The reference price for gold also increased to US$4,098.75 per troy ounce from US$4,072.12, according to a decision published on 17 August 2026.

The increase reflects a shift in investor sentiment, as lower global benchmark interest rates reduce the attractiveness of fixed-income instruments such as deposits, prompting a reallocation into gold as a store of value, said Tommy Andana, Director-General of Foreign Trade at the Ministry of Trade. He noted that the move has boosted global demand for gold, which, amid constrained supply, has driven international prices higher.

Additional factors contributing to the rise include the depreciation of major global currencies and declining bond yields, which further support gold’s appeal as a hedge against inflation and currency risk. The price increase of 0.65% was recorded during the data collection period, the ministry said.

The benchmark prices are determined based on technical inputs from the Ministry of Energy and Mineral Resources, referencing the London Bullion Market Association (LBMA) daily price. The decision was made in coordination with the Coordinating Ministry for Economic Affairs, the Ministry of Finance, and the Ministry of Industry.

Impact on Malaysia’s Gold Market Malaysian gold traders and refiners are expected to monitor the new benchmark closely, as Indonesia is a key regional supplier of gold bullion. Local market participants may adjust their pricing and procurement strategies in response to the higher export reference, particularly for gold destined for international markets.

Indonesia’s gold export benchmark is widely used as a reference point in Southeast Asia, influencing spot and futures pricing in Malaysia’s gold trading hubs such as Kuala Lumpur and Johor Bahru. While Malaysia does not impose export duties on gold, the increase in Indonesia’s benchmark could indirectly affect regional arbitrage opportunities and trade flows.

The price adjustment comes as global central banks continue to signal accommodative monetary policy, which has historically supported safe-haven demand for gold. Analysts suggest that sustained rate cuts or further monetary easing could keep gold prices elevated in the near term.

Sector and Company Implications For Indonesian gold producers and exporters, the higher benchmark price improves profit margins on shipments during the second half of August. Companies such as state-owned Aneka Tambang (Antam) and private refiners may benefit from improved pricing power, especially in contracts tied to LBMA or regional benchmarks.

In Malaysia, refiners such as Logamjaya Sdn Bhd and Masjid Tanah Refinery Sdn Bhd may see temporary cost pressures if they source gold from Indonesia, though the impact is likely to be marginal given Malaysia’s diversified supply chain.

The increase also supports local gold jewellery manufacturers, who may face higher raw material costs but could pass these on to consumers amid strong global demand.

Outlook The outlook for gold prices remains tied to global monetary policy and geopolitical developments. With several major central banks expected to maintain or further reduce interest rates in the coming months, gold’s role as a non-yielding asset is likely to remain attractive.

Indonesia’s next benchmark review is scheduled for the first half of September 2026. Market participants will be watching for signs of sustained demand and supply constraints that could push prices higher.

For now, the 0.65% increase in Indonesia’s gold export benchmark signals continued strength in the precious metals sector, with potential spillover effects across regional markets including Malaysia.

Related: Ministry of Finance · Kuala Lumpur