Kuala Lumpur: The gold futures contract on Bursa Malaysia Derivatives ended higher on Monday amid a weaker United States (US) dollar, said an analyst.

According to BERNAMA News Agency, SPI Asset Management managing partner Stephen Innes noted that the positive performance was capped by signs of easing US-China trade tensions. Investors are closely watching the Federal Reserve’s next move, which is creating a mixed sentiment in the market.

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

At today’s close, the 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.