Kuala lumpur: Gold futures on Bursa Malaysia Derivatives closed higher today, tracking gains in US Comex gold futures amid sustained demand for the precious metal as a hedge against geopolitical and financial risks.

According to BERNAMA News Agency, SPI Asset Management managing partner Stephen Innes noted that global central banks now hold more value in gold than in United States treasuries. This shift is driven not by policy announcements but by market realities. Innes highlighted that since the 2022 freeze of Russian assets, numerous countries have discreetly increased their gold reserves due to escalating political, sanctions, currency, and duration risks.

"Many countries have quietly increased gold reserves as a response to rising political, sanctions, currency, and duration risks," Innes stated in a market commentary today. He emphasized that the move towards gold is not driven by enthusiasm for the asset but as a measure of balance sheet protection, given that gold is free from default risk, political dependency, and currency exposure.

At the close, the spot month January 2026 contract saw a rise to US$5,295.40 per troy ounce from US$5,090.30 per troy ounce. Similarly, the February 2026 contract increased to US$5,311.70 per troy ounce from US$5,106.60 per troy ounce, and the March 2026 contract gained to US$5,330.00 per troy ounce from US$5,124.90 per troy ounce on Tuesday.

Further contracts for April, June, and August 2026 also experienced upward movement, settling at US$5,348.10 per troy ounce compared with US$5,143.00 per troy ounce previously. However, trading volume decreased to 433 lots from 518 lots yesterday, and open interest lessened to 524 contracts from 590 contracts previously.

In the physical market, gold was fixed at US$5,088.10 per troy ounce at the London Bullion Market Association afternoon fix on January 27, 2026.