KUALA LUMPUR: Gold futures contract on Bursa Malaysia Derivatives ended lower today, weighed down by the US dollar’s strong performance, said an analyst. SPI Asset Management managing partner Stephen Innes noted that despite expectations of rate cuts by the US Federal Reserve, gold remains under pressure, unable to gain momentum as higher US Treasury yields and a stronger US dollar continue to pose significant challenges.

According to BERNAMA News Agency, Innes highlighted that with potential policy changes under US President Donald Trump likely deferred until mid-to-late 2025, gold is once again trading on its fundamentals. Its negative correlation with the dollar and rising yields is diminishing its appeal. He further stated the uncertainty in the market revolves around whether the current trend is merely a temporary correction or the onset of a more prolonged decline.

Innes emphasized that the future direction will largely depend on the unfolding of Trump’s policy measures, particularly concerning effort
s to stabilize the Middle East and address the Russia-Ukraine situation. Meanwhile, the market remains cautious, closely monitoring forthcoming developments from Washington. He advised gold investors to be prepared for potential volatility, suggesting a potentially tumultuous period ahead.

The spot month November 2024 fell to US$2,673.10 per troy ounce from Wednesday’s US$2,741 per troy ounce. December 2024 also declined to US$2,686 per troy ounce from US$2,753.90 previously. Similarly, January 2025, February 2025, and April 2025 contracts settled lower at US$2,686 per troy ounce, compared to US$2,753.90 yesterday.

Trading volume showed an increase to 33 lots from Wednesday’s 19 lots, while open interest rose to 41 contracts from 26 previously. The London Bullion Market Association’s afternoon fix on November 6 priced physical gold at US$2,660.2 per troy ounce.