Gold Futures Close At 3-month High Amid Renewed US Tariff Threats

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, Jan 22 (Bernama) -- The gold futures contract on Bursa Malaysia Derivatives ended at its highest level since November 2024 amid renewed tariff threats from United States (US) President Donald Trump, who announced preparations to impose a 10 per cent tariff on Chinese imports. 

SPI Asset Management managing partner Stephen Innes said the move could be the beginning of a gradual and escalating tariff strategy that might extend globally over time.

“Hence, the tariff uncertainty is keeping the gold price up.

“Additionally, the US dollar softened today, alongside a decline in US Treasury yields, both factors bolstering the allure of gold,” he told Bernama. 

Looking ahead, he said the potential for gold to surpass the November 2024 high and break through the US$2,800 mark largely hinges on the upcoming US Federal Reserve (Fed) guidance.

“The next Federal Open Market Committee (FOMC) meeting, scheduled for Jan 28-29, is highly anticipated, especially following indications from Fed governor Christopher Waller that the Fed might cut rates more aggressively this year than currently anticipated by the market.

“Should this dovish stance be confirmed at the meeting, we could see a significant rally in gold prices,” he added. 

Spot month January 2025’s contract rose to US$2,760.20 per troy ounce from US$2,721.80 per troy ounce on Tuesday, and February 2025 increased to US$2,769.10 from US$2,730.70 per troy ounce previously.

The March 2025, April 2025 and June 2025 contracts closed higher at US$2,777.20 from US$2,738.80 per troy ounce previously.

Trading volume eased to 39 lots from 76 on Tuesday, while open interest declined to 61 contracts from 100 contracts previously.

According to the London Bullion Market Association’s afternoon fix on Jan 21, the physical gold price stood at US$2,737.80 per troy ounce.

-- BERNAMA