GOLD FUTURES CLOSE HIGHER ON WEAKER US DOLLAR

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, Jan 24 (Bernama) -- The gold futures contract on Bursa Malaysia Derivatives closed higher on Friday as the greenback weakened after US President Donald Trump's call for interest rate cuts.

SPI Asset Management managing partner Stephen Innes said the market sentiment was also lifted by Trump’s call for the Organisation of the Petroleum Exporting Countries (OPEC) to increase oil supply.

“If OPEC complies, it could lead the US Federal Reserve to cut rates sooner than currently anticipated by the market, which is intrinsically bullish for gold amid the ongoing uncertainty over Trump's trade policies. While his approach appears less confrontational than initially feared, the possibility of a gradual tariff escalation remains a supportive backdrop for gold,” he told Bernama. 

He said the weakening greenback boosted gold prices by making the metal more affordable for buyers using other currencies, a particularly timely benefit with the approaching Chinese New Year (CNY) celebration, typically a period of heightened physical gold buying in Asia. 

The spot-month January 2025 contract rose to US$2,777.0 per troy ounce from US$2,743.50 on Thursday and the February 2025 note went up to US$2,785.90 from US$2,752.50 previously.

The March 2025, April 2025, and June 2025 contracts closed higher at US$2,794.80 per troy ounce from US$2,762.90 previously.

Trading volume advanced to 60 lots from 28 on Thursday, while open interest advanced to 85 contracts from 44 previously.

According to the London Bullion Market Association’s afternoon fix on Jan 23, the physical gold price stood at US$2,744.25 per troy ounce.

-- BERNAMA