Kuala Lumpur: Gold futures on Bursa Malaysia Derivatives ended lower on Thursday due to weak demand. SPI Asset Management managing partner Stephen Innes told Bernama that gold is stuck in a tug-of-war between competing market narratives, and the balance has tipped against the bulls, who are investors that believe the price will rise.

According to BERNAMA News Agency, the seismic surge in global bond yields, driven by Germany’s trillion-euro stimulus initiative, has diminished gold’s appeal for yield-sensitive investors. Innes stated that this surge has made gold a more challenging asset to hold.

Innes further explained that recent developments, such as Donald Trump’s tariff rollback on Canada and Mexico, have reduced some of the risk aversion that previously supported gold prices. As a result, when the demand for gold as a safe-haven asset decreases and real yields increase, gold prices tend to struggle, which is evident in the current market scenario.

The spot month March 2025 contract decreased to US$2,906.40 per troy ounce from Wednesday’s US$2,925.30 per troy ounce. Similarly, the April 2025 contract fell to US$2,916.20 per troy ounce from US$2,935.50. The May 2025, June 2025, and August 2025 contracts also declined, with prices dropping to US$2,924.60 per troy ounce from US$2,946.10 the previous day.

Trading volume saw a reduction, slipping to 154 lots from 176 lots, while open interest decreased to 188 contracts from 209 contracts. According to the London Bullion Market Association’s afternoon fix on March 5, physical gold was priced at US$2,913.25 per troy ounce.