Kuala Lumpur: Gold futures contracts on Bursa Malaysia Derivatives retreated at the close on Tuesday as geopolitical fears eased and investors pivoted their focus toward shifting monetary dynamics.

According to BERNAMA News Agency, SPI Asset Management managing partner Stephen Innes noted that the momentum of gold, fueled by war-related concerns, has diminished alongside Middle East tensions. This development is attributed to the ceasefire deal between Israel and Iran brokered by US President Donald Trump, which appears to be holding for now.

Innes explained, “With Tehran’s retaliation largely symbolic and the Strait of Hormuz untouched, markets have backed off from pricing in a full-blown regional escalation. That’s drained the geopolitical risk premium out of crude, and out of gold.” He further pointed out that although global tensions persist, they are not intensifying, which continues to offer steady support for gold prices. However, he emphasized that interest rate expectations and movements in the US dollar are now the primary influences on gold prices.

The spot-month June 2025 contract fell to US$3,323.4 per troy ounce from Monday’s US$3,368.6, while the July 2025 note dropped to US$3,336.3 from US$3,381.5. The August, September, and October 2025 contracts each declined to US$3,352.3 per troy ounce from US$3,397.5 the previous day.

Trading volume surged to 88 lots compared to 38 lots on Monday’s close, while open interest advanced to 112 contracts from 59 contracts the previous day. Physical gold was priced at US$3,380.55 per troy ounce, as reported by the London Bullion Market Association’s afternoon fix on June 23.