GOLD FUTURES CLOSE LOWER AMID GLOBAL TRADE TENSIONS

By Siti Noor Afera Abu

KUALA LUMPUR, April 8 (Bernama) -- Gold futures on Bursa Malaysia Derivatives closed lower today amid the ongoing global trade tensions between the US and its key trading partners.

SPI Asset Management managing director Stephen Innes said a significant move from Asia - where China’s central bank allowed the yuan to drop below a key level - has triggered a surge in gold demand across the region.

With the weakening yuan, both retail and institutional investors in Asia are seeking gold as a hedge against currency depreciation.

“However, the situation is unstable. While Asian buyers are turning to gold to guard against currency risks, Western traders are taking a different approach. They're selling gold when prices rise, thinking the trade war may not escalate further, especially with more than 50 US allies now entering negotiations,” he told Bernama.

Innes said that for now, gold is benefitting from the panic over falling currencies - but if Western traders continue to sell on positive news, “we could see a back-and-forth battle over gold prices tonight”.

At the close today, spot month April 2025 slid to US$3,004.50 per troy ounce from US$3,032.30 per troy ounce yesterday and May 2025 eased to US$3,016.30 per troy ounce against US$3,044.10 per troy ounce.

June 2025, July 2025 and August 2025 all dropped to US$3,027.50 per troy ounce from US$3,055.90 per troy ounce previously.

Trading volume increased to 187 lots from 153 lots on Monday, while open interest rose to 238 contracts from 199 contracts previously. 

According to the London Bullion Market Association’s afternoon fix on April 7, physical gold was priced at US$3,014.75 per troy ounce. 

-- BERNAMA