Gold Futures Market Takes A Breather As Concerns Over US Tariff Policies Ease

By Siti Noor Afera Abu

KUALA LUMPUR, Jan 23 (Bernama) -- The gold futures contract on Bursa Malaysia Derivatives has taken a breather after its recent sharp surge, as concerns over United States (US) President Donald Trump's tariff policies have eased.

SPI Asset Management managing partner Stephen Innes said many now believe the tariffs may not be as harsh as initially feared.

He said the market’s focus is increasingly shifting toward next week's Personal Consumption Expenditures (PCE) data.

“If it registers at 0.2 per cent or lower, it could signal the start of a new, lower inflation cycle, potentially prompting a shift in the US Federal Reserve (Fed) guidance towards a more dovish stance, which would likely be bullish for gold,” he told Bernama.

However, Innes said the possibility of higher inflation figures could tilt the Fed’s policy in the opposite direction, adding a layer of uncertainty that is currently fueling debate in the markets.

Similarly, the unresolved nature of Trump's tariff plans continues to inject a measure of caution among investors, making the outlook for gold particularly contingent on these unfolding economic and political narratives, he added.

Spot month January 2025’s contract fell to US$2,743.50 per troy ounce from US$2,760.20 per troy ounce on Wednesday, and February 2025 decreased to US$2,752.50 from US$2,769.10 per troy ounce previously.

The March 2025, April 2025 and June 2025 contracts closed weaker at US$2,762.90 from US$2,777.20 per troy ounce previously.

Trading volume eased to 28 lots from 39 on Wednesday, while open interest declined to 44 contracts from 61 contracts previously.

According to the London Bullion Market Association’s afternoon fix on Jan 22, the physical gold price stood at US$2,751.80 per troy ounce.

-- BERNAMA