Kuala lumpur: Gold futures on Bursa Malaysia Derivatives ended lower on Tuesday following China's recent decision to cut a tax incentive on retail jewellery purchases, said SPI Asset Management managing partner Stephen Innes. The move, made over the weekend, has contributed to the decline in gold prices.

According to BERNAMA News Agency, Innes pointed out that the gold market has also been influenced by a subdued reaction to a hawkish shift along the Federal Reserve curve. Several officials have supported Federal Reserve Chair Jerome Powell's cautious stance, which has led to uncertainty regarding a potential rate cut in December, ultimately strengthening the US dollar-a trend that typically exerts downward pressure on gold prices.

Innes further explained that while the demand for jewellery might decrease, the investment demand for gold is expected to rise as Chinese investors increasingly perceive gold as an asset rather than merely an ornamental item. Despite trading above overnight US lows, gold prices remain just below intraday highs, with spot gold hovering around the US$3,995 mark.

The spot month contract for November 2025 decreased to US$4,008.40 per troy ounce from US$4,023.50. Similarly, the December 2025 contract fell to US$4,025.30 from US$4,040.40, and the January 2026 contract edged down to US$4,043.90 from US$4,059.00 on Monday. Contracts for February 2026, April 2026, and June 2026 also settled lower at US$4,059.80 per troy ounce from US$4,074.90 previously.

Trading activity saw a decline, with volume dwindling to 63 lots from 212 on Monday, while open interest decreased to 151 contracts from 289. Meanwhile, physical gold was priced at US$4,025.25 per troy ounce, as per the London Bullion Market Association afternoon fix on November 3, 2025.