GOLD FUTURES CLOSE LOWER AS SAFE-HAVEN DEMAND EASES

By Siti Noor Afera Abu

KUALA LUMPUR, March 5 (Bernama) -- Gold futures on Bursa Malaysia Derivatives (BMD) settled lower on Thursday despite gains in COMEX gold futures, as shifting market sentiment reduced the urgency for investors to hold the precious metal as a geopolitical hedge.

SPI Asset Management managing partner Stephen Innes said the key factor is energy, with oil holding below US$84 per barrel, markets appear to be leaning toward the view that the most intense phase of the Middle East disruption may prove shorter-lived than the open-ended conflict scenario investors initially feared.

He said that shift in perception has reduced the urgency to hold gold as a geopolitical hedge, at least for now. Still, the situation remains extremely fluid.

“The haven demand could quickly re-emerge if the conflict escalates or energy markets start pricing in a more prolonged supply shock,” he told Bernama.

At the close, the spot-month March 2026 contract decreased to US$5.185.70 per troy ounce from US$5.189.20 on Wednesday.

April 2026 eased to US$5,204.20 per troy ounce from US$5,207.40, while May 2026 fell to US$5,223.30 per troy ounce from US$5,224.80.

The June and August 2026 contracts also settled lower at US$5,257.20 per troy ounce compared with US$5,258.70 previously.

Trading volume slid to five lots from nine on Wednesday, while open interest narrowed to 84 contracts from 87 previously. 

Physical gold was fixed at US$5,148.55 per troy ounce at the London Bullion Market Association afternoon fix on March 4, 2026. 

-- BERNAMA