Kuala Lumpur: The gold futures contract on Bursa Malaysia Derivatives closed higher on Monday, tracking gains on COMEX, as investors sought safe-haven assets amid concerns over global political and economic stability, according to SPI Asset Management managing director Stephen Innes. He noted that, at the same time, the US dollar weakened and stock markets turned volatile amid growing economic concerns, trade tensions, and political uncertainty.

According to BERNAMA News Agency, Innes highlighted that with some global markets closed for Easter, trading was lighter, but the message was clear-this was not a random move. He explained that gold is rallying not just on softer yields or a weaker US dollar, but due to a broader crisis of confidence. The market is grappling with several destabilising factors, including US President Donald Trump's tariff moves and an escalating standoff with the US Federal Reserve. There is also a growing realisation that monetary policy is becoming increasingly politicised.

Traders now view gold as insurance against institutional dysfunction rather than merely an inflation hedge. Innes added that China's warning to countries considering deals with Washington has further amplified gold's safe-haven appeal. The focus has shifted from inflation or rate cuts to political tension, currency weakness, and a US dollar losing its status as the strongest currency.

At the close of trading, the spot month April 2025 contract rose to US$3,329.90 per troy ounce from US$3,305.20 per troy ounce last Friday, and the May 2025 contract increased to US$3,340.30 per troy ounce from US$3,315.60 per troy ounce. The June 2025, July 2025, and August 2025 contracts all jumped to US$3,355.00 per troy ounce from US$3,330.30 per troy ounce previously. Trading volume and open interest remained unchanged at 142 lots and 175 contracts respectively.

According to the London Bullion Market Association's afternoon fix on April 17, physical gold was priced at US$3,305.65 per troy ounce.