GOLD FUTURES END LOWER AFTER CHINA'S RETAIL JEWELLERY TAX INCENTIVE CUT

By Zufazlin Baharuddin

KUALA LUMPUR, Nov 4 (Bernama) -- Gold futures on Bursa Malaysia Derivatives ended lower on Tuesday after China cut a tax incentive on retail jewellery purchases over the weekend, said SPI Asset Management managing partner Stephen Innes.

He said gold prices also remained a little depressed after factoring in “yet another subtle hawkish repricing along the Federal Reserve curve.”

“Several officials overnight backed Federal Reserve chair Jerome Powell’s cautious tone,” Innes told Bernama.

Additionally, he said December is no longer a lock for another rate cut, which has strengthened the US dollar, which is typically a negative for gold.

“While jewellery demand may soften further, investment demand should begin to pick up as Chinese investors increasingly view gold as an asset rather than an ornament.

“So, even though we are trading above the overnight US lows, prices remain just under intraday highs, with spot gold hovering around the US$3,995 mark,” he said.

The spot month contract for the November 2025 contract shed to US$4,008.40 per troy ounce from US$4,023.50, December 2025 decreased to US$4,025.30 from US$4,040.40, and January 2026 inched down to US$4,043.90 from US$4,059.00 on Monday.

February 2026, April 2026 and June 2026 contracts all settled lower at US$4,059.80 per troy ounce from US$4,074.90 previously.

Trading volume dwindled to 63 lots from 212 on Monday, while open interest eased to 151 contracts from 289.

Physical gold was priced at US$4,025.25 per troy ounce, according to the London Bullion Market Association afternoon fix on Nov 3, 2025.

-- BERNAMA