GOLD FUTURES TO STAY FIRM AMID BOND MARKET UNCERTAINTY, RATE CUT EXPECTATIONS

By Siti Noor Afera Abu

KUALA LUMPUR, April 12 (Bernama) -- Gold futures on Bursa Malaysia Derivatives are expected to remain supported next week, driven by expectations of US interest rate cuts and rising concerns over the stability of the US bond market.

SPI Asset Management managing director Stephen Innes said that while a weaker US dollar continues to support gold prices, the key driver now is the diminishing appeal of US Treasuries as a safe-haven asset.

“US Treasuries, traditionally viewed as safe-haven instruments, are no longer offering the expected stability, prompting investors to shift towards gold,” he told Bernama.

Innes added that China’s decision to match the US with a 100 per cent tariff hike highlights the risk of a prolonged trade conflict between the world’s two largest economies.

Although markets are starting to discount the direct economic impact, lingering uncertainty is expected to sustain demand for gold.

On a Friday-to-Friday basis, the April spot month rose to US$3,224.00 per troy ounce from US$3,105.20 last week, while May 2025 increased to US$3,234.40 from US$3,126.80.

The June, July and August 2025 contracts each gained to US$3,246.80 per troy ounce from US$3,126.80 last week.

Volume surged to 2,738 lots from 340 lots previously, while open interest expanded to 1,232 contracts from 141.

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