Gold Futures Ease As Global Risk Sentiment Improves

By Nurunnasihah Ahmad Rashid

KUALA LUMPUR, June 16 (Bernama) -- The gold futures contract on Bursa Malaysia Derivatives ended lower on Monday as global risk sentiments improved, said an analyst.

SPI Asset Management managing partner Stephen Innes said gold traded softer throughout the day, even after the weekend’s Israel-Iran escalation sent it higher at the open.

He said the decline came as markets reassessed that the immediate threat - oil supply disruptions - now seems unlikely, so both gold and crude were unwinding some of that geopolitical risk premium.

“Risk-on flows have taken the edge off haven demand, and for now, gold is tracking oil more than US Treasuries. Still, with the US Federal Reserve meeting and the Group of Seven (G7) finance ministers gathering in Canada, this week’s macro calendar is stacked, and volatility should stay elevated,” Innes told Bernama.

He said gold is expected to swing within a wider band between US$3,375 and US$3,475 per troy ounce, with dips likely to find buyers amid US dollar weakness and persistent concerns around the ballooning US fiscal deficit.

The spot-month June 2025 contract eased to US$3,425.2 per troy ounce from Friday’s US$3,430.2, while the July 2025 note dropped to US$3,433.7 from US$3,438.7 previously.  The August, September, and October 2025 contracts dipped to US$3,453.2 per troy ounce from US$3,458.2 on Friday.

Trading volume fell to 25 lots versus 56 lots on Friday, while open interest improved to 61 contracts from 50 contracts. 

Physical gold was priced at US$3,435.35 per troy ounce, according to the London Bullion Market Association’s afternoon fix on June 13.

-- BERNAMA