Gold Futures Hit Record High On Rate Cut Bets

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, Sept 2 (Bernama) -- Gold futures on Bursa Malaysia Derivatives closed on a record high, breaking above the US$3,500 mark on expectations of a United States (US) interest rate cut and renewed concerns over the Federal Reserve’s independence.

SPI Asset Management managing director Stephen Innes said the precious metal’s rise was also underpinned by strong central bank demand.

“The World Gold Council noted that last year, gold had overtaken the euro to become the second-largest reserve asset globally, making up about 20 per cent of official reserves. Key buyers included India, China, Turkey and Poland,” he told Bernama.

He added that the latest rally was particularly notable as it marked the first time spot gold prices had broken the US$3,500 level, with the previous peak seen in April following tariff announcements.

At the close, the September 2025 contract increased to US$3,500.20 per troy ounce from US$3,420.40 at the close last Friday.

The October 2025 contract rose to US$3,519.3 per troy ounce from Friday’s close of US$3,449.90, November 2025 climbed to US$3,536.1 per troy ounce from US$3,466.70, and December 2025 advanced to US$3,487.10 per troy ounce from US$3,466.70 previously.

The February 2026, April 2026 and June 2026 contracts all also settled higher at US$3,556.50 per troy ounce compared with US$3,487.10 per troy ounce on Friday.

Trading volume advanced to 36 lots from four lots last week, while open interest rose to 64 contracts from 33 contracts previously.

Physical gold was priced at US$3,474.90 per troy ounce based on the London Bullion Market Association’s afternoon fix on Sept 1.

-- BERNAMA