GOLD FUTURES REBOUND ON WEST ASIA DE‑ESCALATION HOPES

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, March 25 (Bernama) -- Gold futures on Bursa Malaysia Derivatives rose on Wednesday as the de-escalation narrative surrounding the West Asia conflict made the safe-haven metal more appealing after a recent forced selloff.

SPI Asset Management managing partner Stephen Innes said the de-escalation narrative has allowed gold to rally back, now trading near US$1,550 per ounce, after what was clearly a liquidation-driven selloff rather than a structural break. 

“The narrative surrounding de-escalation in West Asia has shifted from a short five-day pause to the potential for a more lasting solution, which has reduced tension in the oil market and lessened upward pressure on global yields,” he told Bernama.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said foreign markets appeared defensive as traders and investors eyed clearer signs of a de-escalation in the West Asia conflict.

“Despite that, the US Dollar Index (DXY) remains below 100, currently hovering around 99.35 points, while spot gold prices are climbing. This suggests gold has not really lost its lustre after experiencing a significant price correction recently,” he said.

At the close, the spot-month March 2026 contract strengthened to US$4,566.8 per troy ounce from US$4,415.9 on Tuesday, April 2026 gained to US$4,586.9 per troy ounce from US$4,436.0, and May 2026 firmed to US$4,607.6 per troy ounce from US$4,456.2 previously.

The June, August and September 2026 contracts also settled higher at US$4,641.5 per troy ounce compared with US$4,490.10 yesterday.

Trading volume rose to 20 lots from 11 lots on Tuesday, while open interest rose to 86 contracts from 76 contracts previously.

Physical gold was fixed at US$4,413.55 per troy ounce at the London Bullion Market Association afternoon fix on March 24, 2026.

-- BERNAMA