Kuala Lumpur: Gold futures closed higher today following an unexpected rise in the United States inflation report, which spurred increased demand for the precious metal as a safe haven.

According to BERNAMA News Agency, the US headline inflation and core consumer price index for January rose by 3.0 percent and 3.3 percent, respectively, surpassing consensus estimates of 2.9 percent and 3.1 percent. This inflation data prompted investors to turn to gold, seeking protection amid the potential end of the conflict in Ukraine, as former President Donald Trump attempts to mediate between the parties involved.

SPI Asset Management managing partner Stephen Innes noted that the price of gold continued its upward trajectory, driven by hedging activities as market participants anticipated Trump's next policy actions. Innes commented, "If Trump escalates tensions, investors may rush to safe havens, pushing gold prices even higher."

The spot-month February 2025 contract increased to US$2,913.60 per troy ounce, up from US$2,889.00 on the previous day. Similarly, the March 2025 contract rose to US$2,920.70 per troy ounce from US$2,896.10. The April, May, and June 2025 contracts also saw gains, reaching US$2,929.00 per troy ounce compared to the previous close of US$2,902.70.

Trading activity saw a significant uptick, with volume expanding to 56 lots from 27 lots, while open interest climbed to 109 contracts from the previous 81 contracts. Meanwhile, the London Bullion Market Association's afternoon fix on February 12 reported the price of physical gold at US$2,891.50 per troy ounce.