Kuala lumpur: Gold futures on Bursa Malaysia Derivatives closed higher on Wednesday, driven by a softer US dollar and declining crude oil prices, which improved market sentiment.

According to BERNAMA News Agency, SPI Asset Management managing partner Stephen Innes stated that the precious metal gained momentum after crude oil prices fell following President Donald Trump's announcement of a potential resolution with Iran. Innes noted that the rebound in gold reflects renewed safe haven demand and a recalibration of market expectations concerning US monetary policy, should geopolitical risks continue to diminish. He further explained that lower treasury yields tend to weaken the US dollar and enhance the appeal of non-interest-bearing assets such as gold.

Innes anticipates that markets will remain highly sensitive to developments involving Iran and the Strait of Hormuz. He suggested that gold is expected to continue responding closely to changes in oil prices, US Treasury yields, and broader global risk sentiment.

At the close, the spot-month May 2026 contract increased to US$4,726.70 per troy ounce from US$4,580.60 on Tuesday. The June 2026 contract also rose to US$4,740.70 per troy ounce from US$4,593.80. The July, August, and October 2026 contracts settled higher at US$4,755.70 per troy ounce, compared with US$4,608.30 previously.

Trading volume decreased to 15 lots from 33 lots on Tuesday, while open interest slightly declined to 80 contracts from 99 contracts previously. Physical gold was fixed at US$4,576.80 per troy ounce at the London Bullion Market Association afternoon fix on May 5, 2026.