GOLD FUTURES END LOWER ON STRONGER US DOLLAR

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, Nov 7 (Bernama) -- Gold futures contract on Bursa Malaysia Derivatives ended lower today, weighed down by the US dollar’s strong performance, said an analyst.

SPI Asset Management managing partner Stephen Innes said even with the US Federal Reserve expected to cut rates, gold continues to struggle, unable to gain traction as higher US Treasury yields and stronger US dollar present persistent headwinds.

“The market shift is clear; with policy changes under US President Donald Trump likely to be delayed until mid-to-late 2025, gold is trading on fundamentals once more with its negative correlation to the dollar and rising yields chipping away at its allure,” he told Bernama.

“The big question is whether this is a temporary correction or the start of a deeper slide,” he said.

He said the call will hinge on how the Trump 2.0 policy deck unfolds, especially regarding steps toward stabilising the Middle East and the Russia-Ukraine situation.

“For now, though, the market is in a holding pattern, keeping one eye on Washington’s next moves. Gold bulls may need to buckle up -- this could be a bumpy ride ahead,” he added. 

Spot month November 2024 decreased to US$2,673.10 per troy ounce from Wednesday’s US$2,741 per troy ounce, and December 2024 was down to US$2,686 per troy ounce from US$2,753.90 previously.

Meanwhile, January 2025, February 2025 and April 2025 contracts all settled lower at US$2,686 per troy ounce against US$2,753.90 yesterday.

Trading volume improved to 33 lots from Wednesday’s 19 lots, while open interest advanced to 41 contracts from 26 previously.

According to the London Bullion Market Association’s afternoon fix on Nov 6, the price of physical gold was US$2,660.2 per troy ounce.

-- BERNAMA