Gold Futures Close Higher On Lower Oil Prices

By K. Naveen Prabu

KUALA LUMPUR, June 16 (Bernama) -- Gold futures on Bursa Malaysia Derivatives closed higher on Tuesday amid lower oil prices, which eased inflation concerns and improved sentiment towards the precious metal.

SPI Asset Management managing partner Stephen Innes said gold was benefiting from a decline in crude oil prices as easing geopolitical risks in West Asia reduced concerns over supply disruptions.

“Gold is rising because lower oil has removed the main macro roadblock that had been sitting in front of the trade,” he told Bernama.

Innes said pricing indicators in the Dubai crude market suggested concerns over supply shortages in the Gulf region were easing, signalling improving oil availability and reducing upward pressure on prices.

“That matters for gold because lower crude prices reduce inflationary pressures, give the Federal Reserve less reason to maintain a hawkish stance, ease pressure on real yields and weaken the US dollar.

“This is not really a classic crisis bid. Gold is rallying because the oil shock is fading, the Fed looks less threatening, and the metal is reconnecting with its historical pattern of lower rates, a weaker dollar and higher gold prices,” he said. 

At the close, the spot-month June 2026 contract rose to US$4,351.30 per troy ounce from US$4,348.40 at Monday's close, while the July 2026 contract increased to US$4,363.30 per troy ounce from US$4,360.40. The August 2026 contract advanced to US$4,383.20 per troy ounce from US$4,381.60.

The September 2026 contract was US$4,387.70 per troy ounce, while the October 2026 and December 2026 contracts were both pegged at US$4,406.80 per troy ounce.

Trading volume decreased to four lots from 17 on Monday, while open interest was down to 67 contracts from 84 previously.

Meanwhile, physical gold was fixed at US$4,355.20 per troy ounce at the London Bullion Market Association afternoon fix on June 15, 2026.

-- BERNAMA