Kuala Lumpur: The gold futures contract on Bursa Malaysia Derivatives advanced for a second consecutive day, driven by softer US inflation data that strengthened market expectations for interest rate cuts by the US Federal Reserve (Fed) later this year. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said gold continued to attract buying interest as a safe-haven asset.

According to BERNAMA News Agency, the US Labour Department reported that the Consumer Price Index (CPI) rose by 0.1 per cent in May, easing from a 0.2 per cent increase in April. This subtle decrease in inflation has fueled speculation that the Federal Reserve might consider lowering interest rates, making gold a more attractive investment option.

The spot-month June 2025 contract rose to US$3,368.5 per troy ounce from Wednesday's US$3,347.8, while the July 2025 contract increased to US$3,377.0 from US$3,356.3 yesterday. The August, September, and October 2025 contracts improved to US$3,396.5 per troy ounce from US$3,375.8 previously.

Trading volume saw an uptick, improving to 44 lots compared to 38 lots on Wednesday, while open interest narrowed to 69 contracts from 84 contracts. Meanwhile, physical gold was priced at US$3,329.70 per troy ounce, according to the London Bullion Market Association's afternoon fix on June 11.