Gold Futures Retreat As Geopolitical Fears Ease

By Nurunnasihah Ahmad Rashid

KUALA LUMPUR, June 24 (Bernama) -- Gold futures contracts on Bursa Malaysia Derivatives retreated at the close on Tuesday as geopolitical fears eased and investors pivoted their focus toward shifting monetary dynamics.

SPI Asset Management managing partner Stephen Innes said gold's war-fuelled momentum has cooled alongside Middle East tensions, as US President Donald Trump’s ceasefire deal between Israel and Iran appeared to be holding, for now.

“With Tehran’s retaliation largely symbolic and the Strait of Hormuz untouched, markets have backed off from pricing in a full blown regional escalation. That’s drained the geopolitical risk premium out of crude, and out of gold,” he told Bernama.

Innes said that while global tensions remain, they are not getting worse, with the lower level of risk continuing to provide steady support for gold prices. “However, this is no longer being seen as the main reason behind gold price movements, as gold prices are now being influenced more by interest rate expectations and movements in the US dollar,” he added.

The spot-month June 2025 contract fell to US$3,323.4 per troy ounce from Monday’s US$3,368.6, while the July 2025 note dropped to US$3,336.3 from US$3,381.5. The August, September, and October 2025 contracts each dropped to US$3,352.3 per troy ounce from US$3,397.5 yesterday.

Trading volume surged to 88 lots versus 38 lots on Monday’s close, while open interest advanced to 112 contracts from 59 contracts yesterday. 

Physical gold was priced at US$3,380.55 per troy ounce, according to the London Bullion Market Association’s afternoon fix on June 23.

-- BERNAMA