Kuala lumpur: Gold futures on Bursa Malaysia Derivatives (BMD) settled lower on Thursday despite gains in COMEX gold futures, as shifting market sentiment reduced the urgency for investors to hold the precious metal as a geopolitical hedge.

According to BERNAMA News Agency, SPI Asset Management managing partner Stephen Innes indicated that energy prices, particularly oil holding below US$84 per barrel, have influenced market perceptions. Investors are beginning to believe that the most intense phase of the Middle East disruption may be shorter-lived than initially feared, leading to a decreased need to hold gold as a geopolitical hedge, at least temporarily.

Innes also noted that the situation remains unpredictable, with the potential for haven demand to quickly resurface if the conflict escalates or if energy markets begin to factor in a more prolonged supply shock.

At the closing, the spot-month March 2026 contract decreased to US$5,185.70 per troy ounce from US$5,189.20 on Wednesday. The April 2026 contract eased to US$5,204.20 per troy ounce from US$5,207.40, while the May 2026 contract fell to US$5,223.30 per troy ounce from US$5,224.80. The June and August 2026 contracts also settled lower at US$5,257.20 per troy ounce compared with US$5,258.70 previously.

Trading volume declined to five lots from nine on Wednesday, with open interest narrowing to 84 contracts from 87. Meanwhile, physical gold was fixed at US$5,148.55 per troy ounce at the London Bullion Market Association afternoon fix on March 4, 2026.