Kuala Lumpur: Gold futures on Bursa Malaysia Derivatives saw an uptick as uncertainty surrounding United States tariffs on steel and aluminium imports increased the demand for the precious metal, a traditional safe haven during times of economic uncertainty.

According to BERNAMA News Agency, SPI Asset Management’s managing partner Stephen Innes highlighted that despite the presence of higher US yields and a robust dollar, gold prices are reaching unprecedented levels. This surge is largely attributed to the unpredictability surrounding US President Donald Trump’s tariff strategy. Innes remarked, “When it rallies alongside a stronger dollar and rising yields, it is a hedge against geopolitical and economic uncertainty itself.” He further noted the potential for a “paradigm shift where gold serves as the ultimate risk-off asset” if the current trend continues.

The spot-month February 2025 contract climbed to US$2,900.40 per troy ounce from the previous US$2,871.50, while the March 2025 contract increased to US$2,907.50 per troy ounce from US$2,882.50. The April 2025, May 2025, and June 2025 contracts also experienced gains, closing at US$2,915.50 per troy ounce, up from US$2,888.10 on Friday.

The trading volume for gold futures surged significantly, reaching 100 lots from just 36 lots last Friday, with open interest doubling to 138 contracts from 69 contracts. Additionally, the London Bullion Market Association’s afternoon fix on February 7 reported the price of physical gold at US$2,874.65 per troy ounce.