Gold Futures Extend Gains On Weaker Greenback, US Treasury Yields Decline
By Danni Haizal Danial Donald
KUALA LUMPUR, May 7 (Bernama) -- Gold futures on Bursa Malaysia Derivatives extended gains, closing higher on Thursday, as market sentiment improved following a decline in United States Treasury yields and a weaker US dollar.
SPI Asset Management managing partner Stephen Innes said the decline in US Treasury yields has eased pressure on the bullion, after markets remained cautious amid higher energy prices, which could force the US Federal Reserve to maintain a more aggressive interest rate stance for longer.
“The softer US dollar has added further support for gold by improving its attractiveness to international investors,” he told Bernama.
Innes said another important shift supporting the precious metal has been the easing of concern that emerging-market central banks might have to liquidate portions of their gold reserves during an oil shock scenario.
He said that at the peak of global tensions, there had been growing concern that some emerging economies could face pressure to sell gold reserves to finance rising energy import costs and stabilise weakening domestic currencies.
“As oil prices retreat and fears of a prolonged supply shock moderate, those concerns have eased considerably, removing another layer of pressure from the gold market and helping fuel the latest rebound in bullion prices,” he said.
At the close, the spot-month May 2026 contract rose to US$4,762.30 per troy ounce from US$4,726.70 on Wednesday, while the June 2026 contract strengthened to US$4,776.30 per troy ounce from US$4,740.70.
The July, August and October 2026 contracts also settled higher at US$4,791.30 per troy ounce, compared with US$4,755.70 previously.
Trading volume slipped to three lots from 15 lots on Wednesday, while open interest inched down to 64 contracts from 80 contracts previously.
Physical gold was fixed at US$4,706.90 per troy ounce at the London Bullion Market Association afternoon fix on May 6, 2026.
-- BERNAMA