Kuala Lumpur: Gold futures on Bursa Malaysia Derivatives closed lower today amid the ongoing global trade tensions between the US and its key trading partners.

According to BERNAMA News Agency, SPI Asset Management managing director Stephen Innes noted a significant move from Asia, where China’s central bank allowed the yuan to drop below a key level, triggering a surge in gold demand across the region. With the yuan weakening, both retail and institutional investors in Asia are seeking gold as a hedge against currency depreciation.

Innes highlighted the unstable situation, explaining that while Asian buyers are turning to gold to guard against currency risks, Western traders are taking a different approach. They’re selling gold when prices rise, believing the trade war may not escalate further, especially with more than 50 US allies now entering negotiations.

At the close today, spot month April 2025 slid to US$3,004.50 per troy ounce from US$3,032.30 per troy ounce yesterday, and May 2025 eased to US$3,016.30 per troy ounce against US$3,044.10 per troy ounce. June 2025, July 2025, and August 2025 all dropped to US$3,027.50 per troy ounce from US$3,055.90 per troy ounce previously.

Trading volume increased to 187 lots from 153 lots on Monday, while open interest rose to 238 contracts from 199 contracts previously. According to the London Bullion Market Association’s afternoon fix on April 7, physical gold was priced at US$3,014.75 per troy ounce.