Kuala Lumpur: The gold futures contract on Bursa Malaysia Derivatives ended higher on Wednesday due to trade war uncertainties and after India launched military strikes on targets in Pakistan in the wake of the recent Kashmir massacre. The escalating tensions between India and Pakistan have had a significant impact on investor sentiment, leading to increased demand for safe-haven assets like gold.

According to BERNAMA News Agency, what began as a diplomatic disagreement has escalated dangerously, with reports of cross-border shelling and troop deployments heightening investor unease throughout South and Central Asia. The threat of open conflict, especially between two nuclear-armed nations, represents a far more serious concern for global markets.

At today’s close, the spot month May 2025 contract increased to US$3,387.10 per troy ounce from US$3,383.30 on Tuesday. Additionally, the June 2025, July 2025, August 2025, and October 2025 contracts rose to US$3,400.00 per troy ounce compared to US$3,394.70 previously.

The trading volume on the gold futures market increased to 106 lots from 77 lots on Tuesday, while open interest rose to 129 contracts from 89 previously. These changes indicate heightened activity and interest in the gold market amid the current geopolitical tensions.

According to the London Bullion Market Association’s afternoon fix on May 6, physical gold was priced at US$3,391.45 per troy ounce, reflecting the ongoing demand for gold as a secure investment during uncertain times.