Gold Futures Ease As Strong US Data Dampens Rate Cut Expectations

By Abdul Hamid A Rahman

KUALA LUMPUR, July 2 (Bernama) -- The gold futures contract on Bursa Malaysia Derivatives ended mostly lower today as stronger-than-expected US economic data tempered expectations of an interest rate cut this month, boosting the greenback’s appeal over the precious metal.

SPI Asset Management managing partner Stephen Innes said the gold trade is currently being shaped largely by market expectations surrounding the US Federal Reserve’s next move.

“Following the upbeat US job openings and labour turnover survey (JOLTS) and ISM manufacturing data, the already slim chance of a July rate cut has been effectively priced out. This gave the dollar a modest lift and took a bit of shine off gold,” he told Bernama.

However, Innes pointed out that this wasn’t a major reversal, but a recalibration in line with shifting rate expectations.

The spot-month July 2025 contract eased to US$3,352.80 per troy ounce from US$3,358.30, and August 2025 dipped to US$3,368.10 from US$3,373.10.

The September 2025 note increased to US$3,383.00 per troy ounce from US$3,373.10, while both the October and December 2025 contracts retreated to US$3,402.20 from Tuesday’s US$3,406.80.

Trading volume added to 23 lots versus 19 lots previously, while open interest increased to 45 contracts from 35 contracts. 

Physical gold was priced at US$3,349.00 per troy ounce according to the London Bullion Market Association’s afternoon fix on July 1, 2025.

-- BERNAMA