Gold Futures Close Higher After Fed's Bumper Rate Cut
KUALA LUMPUR, Sept 19 (Bernama) -- The gold futures contract on Bursa Malaysia Derivative ended higher following the expected interest rates cut by the United States Federal Reserve (Fed), analysts said.
Gold is priced in US dollars globally and when interest rates are cut, the dollar weakens, making gold cheaper in other currencies and boosting demand.
The Fed cut the target range for the federal funds rate by 50 basis points (bps), from 5.25-5.5 per cent to 4.75-5.00 per cent on Wednesday, the first time since 2020.
Meanwhile, gold futures on Bursa Malaysia saw the September 2024 contract increasing to US$2,597.60 per troy ounce from US$2,576.60 per troy ounce on Wednesday.
The October 2024, November 2024, December 2024, February 2025, and April 2025 contracts all settled higher at US$2,610.40 per troy ounce compared with US$2,589.40 per troy ounce previously.
Volume was lower at 32 lots from 36 lots on Wednesday, while open interest decreased to 64 contracts from 103 contracts yesterday.
The price of physical gold stood at US$2,570.10 per troy ounce, according to the London Bullion Market Association’s afternoon fix on September 18.
-- BERNAMA