By Usha Muthusamy,

KUALA LUMPUR, 17 June 2025: Gold futures contracts on Bursa Malaysia Derivatives concluded lower on Monday, driven by an overall improvement in global risk sentiment. This decline signals a reassessment by markets of immediate threats, including concerns over oil supply disruptions, with both gold and crude oil unwinding some of their geopolitical risk premiums.

Stephen Innes, managing partner at SPI Asset Management, noted that gold traded softer throughout the day despite earlier escalations between Israel and Iran. The market also reacted to softer demand and a lower US Treasury yield. Traders are now keenly observing upcoming data from the US Federal Reserve meeting and speeches by seven G7 finance ministers.

The spot-month June 2025 contract eased to US$2,425.2 per troy ounce. Similarly, the July, August, and October 2025 contracts also closed lower. Total trading volume saw a significant reduction, falling to 10 contracts from 50 contracts recorded on Friday. Physical gold was priced at US$2,417 per troy ounce according to the London Bullion Market Association. Innes anticipates gold to trade within a wider price band of between US$2,375 and US$2,475 per troy ounce, with potential buying interest arising from US dollar weakness and ongoing concerns about the US fiscal deficit.

Source: BERNAMABiz