KUALA LUMPUR: The gold futures contract on Bursa Malaysia Derivatives ended higher today as the United States election draws near.

According to BERNAMA News Agency, SPI Asset Management managing partner Stephen Innes noted that gold is expected to perform well regardless of the election outcome due to ongoing geopolitical tensions. He highlighted that gold prices surged by 55 percent during Donald Trump’s term, driven by the trade war, and rose another 45 percent under Joe Biden, fueled by growing budget deficits. Innes pointed out that expansionary policies have historically been beneficial for gold, irrespective of who occupies the US Oval Office.

Innes also discussed potential market reactions depending on the election results. He suggested that a Kamala Harris victory could lead to a weaker dollar and lower bond yields, typically positive for gold. Conversely, a Trump win might result in higher tariffs on China and other trading partners, maintaining gold’s appeal as a safe haven. However, investors ar
e cautious, as a Trump victory might strengthen the US dollar and bond yields, which could negatively impact gold.

He advised market participants to remain prudent until all election results are finalized, as the future trajectory of gold will depend not only on the presidential winner but also on the composition of the US Congress.

Today’s trading saw the spot month November 2024 rise to US$2,753.50 per troy ounce from US$2,752.40 per troy ounce on Monday. Additionally, the December 2024 contract increased to US$2,766.40 per troy ounce from US$2,764.20 per troy ounce. The January 2025, February 2025, and April 2025 contracts all settled higher at US$2,766.40 per troy ounce, compared to US$2,764.20 per troy ounce yesterday.

Trading volume increased to nine lots from six lots on Monday, while open interest rose to 17 contracts from 13 contracts previously. The London Bullion Market Association’s afternoon fix on November 4 reported the price of physical gold at US$2,742.60 per troy ounce.