Gold Futures Rise Amid Global Gold Rush Fuelled By Central Banks' Demand
By Siti Radziah Hamzah
KUALA LUMPUR, Feb 5 (Bernama) -- Gold futures on Bursa Malaysia Derivatives strengthened today, following a global gold rush driven by persistent demand from central banks, said an analyst.
SPI Asset Management managing partner Stephen Innes said the gold market was breaking record highs today, and demand for gold was particularly seen from the BRICS bloc, which is actively pursuing de-dollarisation.
“In addition to this, US President Donald Trump’s threats to impose 100 per cent tariffs on BRICS nations if they abandon the US dollar have intensified the urgency to stockpile bullion,” he told Bernama.
Innes noted that gold traders and hedge funds in the West were stockpiling gold, while in Asia, buyers were turning to gold as both a shield against economic fallout from the trade war and a timeless store of value.
“With BRICS+ controlling 42 per cent of global central bank forex reserves and shifting towards gold, this is not merely another speculative rally; it is a seismic shift in the global financial landscape,” he added.
The spot-month February 2025 contract rose to US$2,866.90 per troy ounce from US$2,807.20 per troy ounce on Tuesday.
The March 2025 contract went up to US$2,877.90 per troy ounce from US$2,819.20 per troy ounce yesterday.
The April 2025, May 2025 and June 2025 contracts held steady at US$2,884.90 per troy ounce from US$2,826.20 per troy ounce.
Trading volume jumped to 97 lots from 34 lots on Tuesday, while open interest soared to 133 contracts from 73 contracts.
According to the London Bullion Market Association’s afternoon fix on Feb 4, the price of physical gold stood at US$2,843.55 per troy ounce.
-- BERNAMA