By Nurunnasihah Ahmad Rashid
KUALA LUMPUR, April 21 (Bernama) -- The gold futures contract on Bursa Malaysia Derivatives closed higher on Monday, tracking gains on COMEX, as investors sought safe-haven assets amid concerns over global political and economic stability, according to SPI Asset Management managing director Stephen Innes.
He noted that, at the same time, the US dollar weakened and stock markets turned volatile amid growing economic concerns, trade tensions, and political uncertainty.
“With some global markets closed for Easter, trading was lighter, but the message was clear-- this was not a random move,” he said.
“Gold is rallying not just on softer yields or weaker US dollar, but due to a broader crisis of confidence,” he told Bernama.
Innes said the market is grappling with several destabilising factors -- from US President Donald Trump’s tariff “blitzkrieg” and an escalating standoff with the US Federal Reserve, to a growing realisation that monetary policy is becoming increasingly politicised.
“Traders no longer view gold merely as an inflation hedge — they see it as insurance against institutional dysfunction,” he added.
“China’s warning to countries considering deals with Washington — a not-so-veiled threat to Japan, South Korea and others sitting on the fence — has only amplified gold’s safe-haven appeal.
“It’s no longer just about inflation or rate cuts anymore. It’s about political tension, currency weakness, and a US dollar that’s starting to lose its shine as the strongest currency,” he said.
At today’s close, the spot month April 2025 contract rose to US$3,329.90 per troy ounce from US$3,305.20 per troy ounce last Friday, and May 2025 contract increased to US$3,340.30 per troy ounce from US$3,315.60 per troy ounce.
June 2025, July 2025, and August 2025 contracts all jumped to US$3,355.00 per troy ounce from US$3,330.30 per troy ounce previously.
Trading volume and open interest were unchanged at 142 lots and 175 contracts respectively.
According to the London Bullion Market Association’s afternoon fix on April 17, physical gold was priced at US$3,305.65 per troy ounce.
-- BERNAMA
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