Gold Futures End Lower Amid Ongoing US Political Uncertainties, Middle East Tensions

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, Nov 4 (Bernama) -- The gold futures contract on Bursa Malaysia Derivatives closed lower on Monday but remained buoyed by ongoing political uncertainties in the United States and Middle East geopolitical tensions, said an analyst.

SPI Asset Management managing partner Stephen Innes said the precious metal, however, is facing downward pressure amid growing expectations that the US Federal Reserve may adopt a less aggressive rate-cutting path, influenced by robust economic data.

“Investors are growing increasingly jittery over the possibility of a Republican victory in the upcoming presidential election, fearing that it could not only send US debt spiralling but also plunge the global economy into chaos, courtesy of a potentially devastating trade war.

“The safe-haven appeal of gold is shining brighter as uncertainty takes centre stage,” he told Bernama. 

Innes said a Democratic victory suggests fiscal expansion, which would be bullish for gold, but if Kamala Harris wins, he believes the initial reaction will be a knee-jerk lower.

Spot month November 2024 fell to US$2,752.40 per troy ounce from Friday’s US$2,777.20 per troy ounce, and December 2024 declined to US$2,764.20 per troy ounce from US$2,777.20 per troy ounce previously. 

Meanwhile, January 2025, February 2025 and April 2025 contracts all settled lower at US$2,764.20 per troy ounce against US$2,777.20 per troy ounce.   

Trading volume increased to six lots from Friday’s two lots, while open interest went up to 13 contracts from eight contracts previously.

According to the London Bullion Market Association’s afternoon fix on November 1, the price of physical gold stood at US$2,744.30 per troy ounce.

-- BERNAMA