KUALA LUMPUR: The gold futures contract on Bursa Malaysia Derivatives concluded the day on a lower note, influenced by the robust performance of the US dollar and an uptick in United States Treasury yields, according to an analyst.

According to BERNAMA News Agency, SPI Asset Management managing partner Stephen Innes highlighted that the market has witnessed a shift from traditional safe-haven assets like gold to more volatile investments such as stocks, following Donald Trump’s victory in the US presidential election. Innes noted, “Higher US Treasury yields and a stronger dollar are also putting some pressure on gold. However, I think this is likely a short-term move.”

Innes further elaborated that once Trump announces his tariff plans, gold might regain its appeal due to potential economic uncertainties. Despite the US 10-year Treasury yields increasing by 11 basis points, he observed that investors remain cautious and are anticipating a US Federal Reserve rate cut, which could moderate the dollar’s ascend
ancy this week.

In the political arena, Republican candidate Trump, aged 78, is speculated to be on the verge of a victory over Democrat Kamala Harris in the 2024 US presidential election. Meanwhile, the spot month November 2024 gold futures decreased to US$2,741 per troy ounce, compared to US$2,753.50 per troy ounce on Tuesday. Similarly, December 2024 futures fell to US$2,753.90 per troy ounce from a previous US$2,766.40 per troy ounce.

Additionally, the January 2025, February 2025, and April 2025 contracts also experienced declines, settling at US$2,753.90 per troy ounce as opposed to US$2,766.40 per troy ounce observed yesterday. Trading volume showed improvement, rising to 19 lots from Tuesday’s nine lots, while open interest expanded to 26 contracts from the previous 17 contracts.

According to the London Bullion Market Association’s afternoon fix on Nov 5, the physical gold price stood at US$2,742.55 per troy ounce.