Kuala Lumpur: The gold futures contract on Bursa Malaysia Derivatives closed higher for the second consecutive day, tracking gains on COMEX, as investors continued to flock to the precious metal amid growing concerns about the global economy. SPI Asset Management managing director Stephen Innes noted that gold surged past US$3,500 per troy ounce, an unprecedented high, driven not by recent comments from US President Donald Trump about the US Federal Reserve, but due to a growing distrust in paper money.

According to BERNAMA News Agency, gold prices rose by approximately 2.0 percent on Tuesday, surpassing US$3,500 per troy ounce in the morning for the first time in history. Innes explained that central banks around the world are expected to cut interest rates soon, and gold is moving ahead of this shift. He emphasized that this is not just a reactionary measure but a warning, as people lose trust in paper money and central banks, with gold acting as a safe haven amidst uncertainty.

Innes highlighted that this rise in gold is different from past surges, being both stronger and more significant. He pointed out that, when adjusted for inflation, current gold prices are higher than during the crisis of the 1980s. “People want something real they can trust, and gold provides that,” he said.

At the close of trading, the spot month April 2025 contract rose to US$3,398.70 per troy ounce from US$3,329.90 per troy ounce on Monday, while the May 2025 contract increased to US$3,407.70 per troy ounce from US$3,340.30 per troy ounce. June, July, and August 2025 contracts all jumped to US$3,422.40 per troy ounce from US$3,355.00 per troy ounce the previous day. Trading volume also saw an increase, climbing to 159 lots from 142 lots on Monday, with open interest rising to 188 contracts from 175 contracts previously.

According to the London Bullion Market Association’s afternoon fix on April 17, physical gold was priced at US$3,305.65 per troy ounce.