GOLD FUTURES CLOSE HIGHER AMID WEAKER US DOLLAR

By Danni Haizal Danial Donald

KUALA LUMPUR, May 5 (Bernama) -- The gold futures contract on Bursa Malaysia Derivatives ended higher on Monday amid a weaker United States (US) dollar, said an analyst.

SPI Asset Management managing partner Stephen Innes said, however, the positive performance was capped by signs of easing US-China trade tensions with investors closely watching the Federal Reserve’s next move.

“With sentiment caught between reduced geopolitical risks and the approaching Fed rate decision, gold's rise was limited — helped by currency market dynamics but capped by cautious risk positioning.

“The real challenge for gold lies ahead... if the Fed were to signal a dovish turn or inflation expectations surge, prices could climb significantly. Until then, the metal remains constrained, fluctuating between hopes of macroeconomic easing and continued monetary tightening,” he told Bernama.

At today’s close, spot month May 2025 contract increased to US$3,315.10 per troy ounce from US$3,288.10 on Friday.

Meanwhile, the June 2025, July 2025, August 2025 and October 2025 contracts rose to US$3,324.50 per troy ounce compared to US$3,288.10 previously.

Trading volume increased to 82 lots from 33 lots on Friday, while open interest rose to 122 contracts from 40 contracts previously.

According to the London Bullion Market Association’s afternoon fix on May 2, physical gold was priced at US$3,249.70 per troy ounce.

-- BERNAMA