GOLD FUTURES MOSTLY HIGHER AT CLOSE AS US DOLLAR WEAKENS

By Siti Radziah Hamzah

KUALA LUMPUR, March 5 (Bernama) -- Gold futures on Bursa Malaysia Derivatives were mostly higher on Wednesday, supported by a weakening greenback and the growing bets for deeper US interest rate cuts than currently priced, said an analyst.

SPI Asset Management managing partner Stephen Innes said that with the US dollar under pressure and interest rate expectations shifting, the market has pivoted back to traditional “gold drivers,” namely, monetary policy and inflation hedging.

“For now, traders are locked in on the macro play, but no one is taking their eyes off the geopolitical risk backdrop. With the tariff uncertainty still looming, tensions brewing in multiple regions and broader financial markets in flux, gold remains a key hedge against unexpected volatility. If the risk escalates, the flight to safety trade could supercharge bullion’s rally - but even without it, the setup remains bullish,” he told Bernama.

The spot month March 2025 contract was slightly lower at US$2,925.30 per troy ounce from US$2,928.30 on Tuesday, while April 2025 dipped to US$2,935.50 from  US$2,939.10. However, the May 2025, June 2025, and August 2025 notes all rose to US$2,946.10 per troy ounce from US$2,939.10.

The trading volume bounced to 176 lots from 62 lots, while open interest widened to 209 contracts from 98 contracts previously.  

According to the London Bullion Market Association’s afternoon fix on March 4, physical gold was priced at US$2,905.90 per troy ounce. 

-- BERNAMA