GOLD FUTURES ON BMD DECLINE DESPITE COMEX GAINS, WEIGHED BY HIGHER BOND YIELDS

By Siti Noor Afera Abu

KUALA LUMPUR, March 4 (Bernama) -- Gold futures on Bursa Malaysia Derivatives (BMD) declined on Wednesday despite the positive performance of COMEX gold futures, as the market closely monitored the conflict in the Middle East.

SPI Asset Management managing partner Stephen Innes said gold prices were lower mainly because the surge in oil prices had pushed global bond yields sharply higher, forcing markets to reprice inflation expectations and the likely response from central banks.

As yields rise, he said, the opportunity cost of holding a non-yielding asset like gold increases, which tends to pressure prices.

“While gold has recovered from the session lows during Asian trading, it is still tracking below yesterday’s close as the repricing in US yields and Federal Reserve expectations continue to dominate the near-term direction,” he told Bernama.

At the close, the spot-month March 2026 contract decreased to US$5.189.20 per troy ounce from US$5.288.50 on Tuesday.

April 2026 slipped to US$5,207.40 per troy ounce from US$5,306.70, while May 2026 weakened to US$5,224.80 per troy ounce from US$5,316.30.

The June and August 2026 contracts also settled lower at US$5,258.70 per troy ounce compared with US$5,350.20 previously.

Trading volume fell to nine lots from 21 on Tuesday, while open interest narrowed to 87 contracts from 95 previously. 

Physical gold was fixed at US$5,033.65 per troy ounce at the London Bullion Market Association afternoon fix on March 3, 2026. 

-- BERNAMA