GOLD FUTURES END LOWER ON STRONGER US DOLLAR, HIGHER US TREASURY YIELDS

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, Nov 6 (Bernama) -- The gold futures contract on Bursa Malaysia Derivatives ended lower today, weighed down by the US dollar’s stronger performance and higher United States (US) Treasury yields, said an analyst.

SPI Asset Management managing partner Stephen Innes said that following Donald Trump’s victory in the US presidential election, there has been a shift from safe-haven assets like gold to riskier investments like stocks.

“Higher US Treasury yields and a stronger dollar are also putting some pressure on gold. However, I think this is likely a short-term move.

“Once Trump lays out his tariff plans, I expect gold to start rising again, as any resulting economic uncertainty could make it attractive to investors once more,” he told Bernama.

According to Innes, the US 10-year Treasury yields only nudged up by 11 basis points, with investors being in cautious wait-and-see mode and still counting on a US Federal Reserve rate cut tomorrow, which could temper the dollar’s move this week.

Republican candidate Trump, 78, was reported to be on track to defeat Democrat Kamala Harris in the 2024 US presidential election.

Spot month November 2024 decreased to US$2,741 per troy ounce from Tuesday’s US$2,753.50 per troy ounce, and December 2024 went down to US$2,753.90 per troy ounce from US$2,766.40 per troy ounce previously.

Meanwhile, January 2025, February 2025 and April 2025 contracts all settled lower at US$2,753.90 per troy ounce against US$2,766.40 per troy ounce yesterday.

Trading volume improved to 19 lots from Tuesday’s nine lots, while open interest advanced to 26 contracts from 17 contracts previously.

According to the London Bullion Market Association’s afternoon fix on Nov 5, the price of physical gold stood at US$2,742.55 per troy ounce.

-- BERNAMA