GOLD FUTURES EXTEND UPWARD MOMENTUM AMID ESCALATING GEOPOLITICAL TENSIONS

By Danni Haizal Danial Donald

KUALA LUMPUR, Jan 20 (Bernama) -- Gold futures on Bursa Malaysia Derivatives extended their upward momentum on Tuesday, closing higher as market sentiment was further supported by escalating trade tensions between the United States (US) and the European Union.

SPI Asset Management managing partner Stephen Innes noted that renewed posturing by US President Donald Trump regarding Greenland, along with growing discussion of potential fractures within the North Atlantic Treaty Organisation (NATO), has reinforced gold’s role as a geopolitical hedge.

“With political risk premiums creeping back into global markets, bullion remains well supported relative to risk-sensitive assets,” he told Bernama.

According to reports, Trump said he had a “very good” telephone conversation with NATO Secretary General Mark Rutte on Greenland, and added that they had agreed to hold a meeting involving various parties at the World Economic Forum in Davos, Switzerland.

Meanwhile, the spot-month January 2026 contract increased to US$4,741.10 per troy ounce from US$4,672.60 per troy ounce on Monday, February 2026 rose to US$4,756.50 per troy ounce from US$4,689.0 per troy ounce and March 2026 climbed to US$4,774.20 per troy ounce from US$4,706.0 per troy ounce previously.

The April, June and August 2026 contracts were also higher, settling at US$4,792.40 per troy ounce compared with US$4,724.20 per troy ounce yesterday.

Trading volume jumped to 152 lots from 64 lots on Monday, while open interest advanced to 228 contracts from 141 contracts previously.

Physical gold was fixed at US$4,664.95 per troy ounce at the London Bullion Market Association afternoon fix on Jan 19, 2026. 

-- BERNAMA