Gold Futures End Lower On Stronger US Dollar, Higher US Treasury Yields

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, Nov 14 (Bernama) -- The gold futures contract on Bursa Malaysia Derivatives ended lower today, weighed down by the US dollar’s stronger performance and higher United States (US) treasury yields, said an analyst.

SPI Asset Management managing partner Stephen Innes said market sentiment was also pressured as incoming US President Donald Trump hints at brokering peace in the Middle East and Eastern Europe, which could reduce the geopolitical tensions that previously drove gold prices higher.

“However, the drop in gold’s price in US dollar terms opens up intriguing possibilities for local investors, especially in regions where currency risk is a growing concern.

“For instance, with projections that the ringgit could slip to 4.70 against the US dollar as Trump’s full tariff agenda unfolds, this could be an opportune moment to buy gold as a hedge against local currency depreciation,” he told Bernama. 

In addition, he said gold’s US$2,500 mark is a huge technical level that may attract traditional gold bulls, signalling a possible pivot point for future buyers.

Spot month November 2024 fell to US$2,559.30 per troy ounce from US$2,617.20 per troy ounce yesterday.

Meanwhile, the December 2024, January 2025, February 2025 and April 2025 contracts all settled lower at US$2,572.90 per troy ounce compared to US$2,630.70 previously.

Trading volume went up to 12 lots from Wednesday’s 10 lots, while open interest improved to 31 contracts from 26 contracts previously.

According to the London Bullion Market Association’s afternoon fix on Nov 13, the price of physical gold was at US$2,598.75 per troy ounce.

-- BERNAMA