Gold Futures Close Higher After Higher-Than-Expected US Inflation Report

By Zufazlin Baharuddin

KUALA LUMPUR, Feb 13 (Bernama) -- Gold futures on Bursa Malaysia Derivatives closed higher today after the inflation report from the United States exceeded expectations, leading to increased safe-haven demand.

The US headline inflation and core consumer price index in January rose 3.0 per cent and 3.3 per cent, respectively, higher than consensus estimates of 2.9 per cent and 3.1 per cent.

SPI Asset Management managing partner Stephen Innes stated that investors seek shelter in the safe-haven metal due to the potential conclusion of the war in Ukraine, following Donald Trump’s efforts to initiate negotiations with Russian President Vladimir Putin.

“Gold continued to march higher, underpinned by hedging flows as traders braced for Trump’s next move on its policies.

“If Trump escalates (tensions), investors may rush to safe havens, pushing gold prices even higher,” he told Bernama.

The spot-month February 2025 contract rose to US$2,913.60 per troy ounce from US$2,889.00 on Wednesday, while the March 2025 contract went up to US$2,920.70 per troy ounce from US$2,896.10 previously.  

The April 2025, May 2025 and June 2025 contracts were all higher at US$2,929.00 per troy ounce compared with Wednesday’s close of US$2,902.70.  

Trading volume expanded to 56 lots from 27 lots on Wednesday, while open interest increased to 109 contracts from 81 contracts previously.    

According to the London Bullion Market Association’s afternoon fix on February 12, the price of physical gold stood at US$2891.50 per troy ounce. 

-- BERNAMA