malaysiang
KUALA LUMPUR: The gold futures contract on Bursa Malaysia Derivatives closed lower on Monday amid ongoing political uncertainties in the United States and geopolitical tensions in the Middle East, stated an analyst.
According to BERNAMA News Agency, SPI Asset Management managing partner Stephen Innes highlighted that while these global uncertainties continue to support gold’s safe-haven appeal, the metal is under downward pressure due to expectations of a more measured approach by the US Federal Reserve concerning rate cuts, driven by strong economic data.
Innes noted that investor anxiety is rising over the potential of a Republican victory in the upcoming presidential election, which could exacerbate US debt issues and result in global economic disruptions, potentially triggering a severe trade conflict. This uncertainty is enhancing gold’s attractiveness as a safe-haven asset in the current climate.
He further explained that a Democratic victory, characterized by fiscal expansion, would likely support
gold prices. However, he cautioned that an initial negative reaction might occur if Kamala Harris were to win.
The spot month November 2024 gold futures fell to US$2,752.40 per troy ounce from Friday’s US$2,777.20 per troy ounce, while December 2024 futures decreased to US$2,764.20 per troy ounce from US$2,777.20 per troy ounce. Additionally, contracts for January 2025, February 2025, and April 2025 also settled lower at US$2,764.20 per troy ounce, compared to US$2,777.20 per troy ounce previously.
Trading activity saw an increase, with volume rising to six lots from Friday’s two lots, and open interest climbing to 13 contracts from the previous eight contracts.
According to the London Bullion Market Association’s afternoon fix on November 1, the price of physical gold was US$2,744.30 per troy ounce.
