Gold Futures Extend Winning Streak On Escalating US-China Trade Tensions

By Siti Noor Afera Abu

KUALA LUMPUR, April 11 (Bernama) -- The gold futures contract on Bursa Malaysia Derivatives closed higher for the third straight day today, tracking gains on COMEX, as intensifying US-China trade tensions continued to drive safe-haven demand.

SPI Asset Management managing director Stephen Innes noted that China’s reciprocal tariff hike to match the US’s tariffs signals the beginning of a potentially prolonged trade standoff, keeping investors on edge and sustaining interest in gold.

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“Speculation that China may reduce its holdings of US Treasury bonds could further enhance gold’s as a diversification asset. Additionally, easing expectations for US interest rates are also seen as a supportive factor for bullion in the near term,” he told Bernama.

According to reports, China today raised its duties on imports of US goods to 125 per cent from 84 per cent. Meanwhile, reports on April 10 said the White House clarified that the tariff rate on Chinese imports has risen to 145 per cent, up from 125 per cent stated previously.

At the close today, the spot month April 2025 contract increased to US$3,224.0 per troy ounce from US$3,119.40 per troy ounce yesterday, while May 2025 rose to US$3,234.40 per troy ounce against US$3,129.80 per troy ounce before.

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June 2025, July 2025, and August 2025 all climbed to US$3,246.80 per troy ounce from US$3,142.20 per troy ounce previously.

Trading volume increased to 1,193 lots from 653 lots on Thursday, while open interest jumped to 1,232 contracts from 697 contracts. 

According to the London Bullion Market Association’s afternoon fix on April 10, physical gold was priced at US$3,143.15 per troy ounce.

-- BERNAMA