Gold Futures Slip As Stronger US Dollar Offsets Safe-haven Appeal

By Siti Noor Afera Abu

KUALA LUMPUR, March 3 (Bernama) -- Gold futures on Bursa Malaysia Derivatives declined on Tuesday, in line with weaker US COMEX gold futures as the greenback strengthens amid the Middle East conflict.

SPI Asset Management managing partner Stephen Innes said that the recent 1.5 per cent decline in global gold prices may seem surprising, especially with the escalating tensions in the Middle East. However, this decline reflects stronger underlying macroeconomic forces rather than a rejection of gold’s traditional role as a safe-haven asset.

He noted that the US dollar is firmer and US Treasury yields are higher, particularly real yields, which mechanically pressure gold by increasing the opportunity cost of holding a non-yielding asset.

“In the early stages of geopolitical stress, investors often sell risk assets and move into cash and dollars rather than immediately rotating into gold.

“But for now, the dominant trade is liquidity-driven de-risking rather than an inflation hedge bid, which explains why gold is weaker despite the geopolitical backdrop,” Innes told Bernama.

At the close, the spot-month March 2026 contract decreased to US$5.288.50 per troy ounce from US$5,414.20 on Monday.

April 2026 slipped to US$5,306.70 per troy ounce from US$5,432.40, while May weakened to US$5,316.30 per troy ounce from US$5,451.40.

The June and August 2026 contracts also settled lower at US$5,350.20 per troy ounce from US$5,485.30 previously.

Trading volume rose to 21 lots from 16 on Monday, while open interest increased to 95 contracts from 92 previously. 

Physical gold was fixed at US$5,313.90 per troy ounce at the London Bullion Market Association afternoon fix on March 2, 2026. 

-- BERNAMA