Kuala Lumpur: Gold futures on Bursa Malaysia Derivatives surged at the close on Tuesday as investors turned to safe haven assets after US President Donald Trump confirmed tariffs on Canada, Mexico, and China.

According to BERNAMA News Agency, SPI Asset Management managing partner Stephen Innes said the gold market experienced a strong bid, fueled by the triple threat of tariff escalation, heightened geopolitical risk in Ukraine, and rising odds for a US Federal Reserve rate cut. Innes noted that the tariff barrage added another layer of global uncertainty, which sent investors running for safe havens. The growing tensions in Ukraine increased the geopolitical risk premium, further boosting gold’s appeal. Additionally, pressure on the US dollar due to warning signs in economic data and increasing rate cut bets made gold even more attractive.

The spot month March 2025 contract increased to US$2,928.30 per troy ounce from US$2,878.20 on Monday, while April 2025 went up to US$2,939.10 from US$2,887.40. The May 2025, June 2025, and August 2025 notes all rose to US$2,939.10 per troy ounce from US$2,887.40 the previous day.

The trading volume bounced to 62 lots from 12 lots, while open interest widened to 98 contracts from 53 contracts previously. According to the London Bullion Market Association’s afternoon fix on March 3, physical gold was priced at US$2,880.70 per troy ounce.