Kuala Lumpur: Gold futures on Bursa Malaysia Derivatives strengthened today, following a global gold rush driven by persistent demand from central banks, said an analyst.

According to BERNAMA News Agency, SPI Asset Management managing partner Stephen Innes highlighted that the gold market was breaking record highs today, with significant demand from the BRICS bloc. This bloc is actively pursuing de-dollarisation, contributing to the heightened interest in gold.

Innes pointed out that US President Donald Trump’s threats to impose 100 percent tariffs on BRICS nations if they abandon the US dollar have intensified the urgency to stockpile bullion. He mentioned that gold traders and hedge funds in the West were amassing gold, while buyers in Asia were turning to gold as a protective measure against the economic fallout from trade tensions and as a reliable store of value.

He further elaborated that with BRICS+ controlling 42 percent of global central bank forex reserves and shifting towards gold, this movement represents a significant change in the global financial landscape rather than a typical speculative rally.

The spot-month February 2025 contract rose to US$2,866.90 per troy ounce from US$2,807.20 per troy ounce on Tuesday. The March 2025 contract increased to US$2,877.90 per troy ounce from US$2,819.20 per troy ounce yesterday. Meanwhile, the April 2025, May 2025, and June 2025 contracts held steady at US$2,884.90 per troy ounce from US$2,826.20 per troy ounce.

Trading volume surged to 97 lots from 34 lots on Tuesday, while open interest climbed to 133 contracts from 73 contracts. According to the London Bullion Market Association’s afternoon fix on Feb 4, the price of physical gold was US$2,843.55 per troy ounce.