Gold Futures End Lower On Stronger US Dollar

By Danni Haizal Danial Donald

KUALA LUMPUR, May 27 (Bernama) -- The gold futures contract on Bursa Malaysia Derivatives ended lower on Tuesday due to a stronger United States (US) dollar, said an analyst.

SPI Asset Management managing partner Stephen Innes said the stronger greenback makes bullion —priced in US dollar — more expensive for buyers using other currencies, and when equities look attractive, the urge to park cash in a safe haven like gold naturally fades.

“Nevertheless, any decline is expected to be modest. Central banks in emerging markets have consistently purchased physical gold over the long term as part of their strategy to reduce reliance on the US dollar.

“This steady, structural demand helps support gold prices, limiting losses when short-term investors sell,” he told Bernama.

Spot month May 2025 contract went down to US$3,304.70 per troy ounce from US$3,331.20 per troy ounce on Monday, while the June 2025 contract weakened to US$3,318.00 per troy ounce from US$3,344.70 per troy ounce previously.   

The July, August, and October 2025 contracts eased to US$3,331.70 per troy ounce from US$3,358.40 per troy ounce previously.  

Trading volume declined to seven lots from 23 lots on Monday, while open interest slipped to 51 contracts from 74 contracts.

Physical gold was priced at US$3,342.65 per troy ounce, according to the London Bullion Market Association’s afternoon fix on May 23.

-- BERNAMA