Kuala Lumpur: The gold futures market on Bursa Malaysia Derivatives is expected to trade lower, which may prompt investors to buy on dips, said SPI Asset Management managing director Stephen Innes. He mentioned that despite the anticipated short-term decline, gold remains a profitable and liquid asset. In a broad-based equity wipeout, investors often sell their profitable assets, including gold.

According to BERNAMA News Agency, Stephen Innes elaborated on the rebalancing paradox, explaining that gold might experience short-term losses not because its value proposition has diminished, but due to the need for portfolios to cover deficits in other areas. He emphasized that the long-term demand for gold remains strong.

During the holiday-shortened trading week, the spot price for April increased from US$3,080.20 per troy ounce to US$3,105.20 per troy ounce. Additionally, the May 2025, June 2025, and August 2025 contracts saw gains, rising to US$3,126.80 per troy ounce from last week's US$3,090.20 per troy ounce.

Trading activity also saw a notable increase, with volume advancing to 340 lots this week from 226 lots the previous week. Open interest grew significantly to 141 contracts, compared to 78 contracts before. The London Bullion Market Association's afternoon fix on April 3 showed that physical gold was priced at US$3,118.10 per troy ounce.

The markets were closed on Monday and Tuesday in observance of the Hari Raya Aidilfitri celebration.