KUALA LUMPUR: Gold futures on Bursa Malaysia Derivatives fell on Thursday amid growing concerns that the United States may be planning a tactical amphibious operation near Kharg Island, a key hub for Iran’s crude exports.
SPI Asset Management’s managing partner, Stephen Innes, said gold prices dropped from around USD4,950 (RM19,500) overnight to near USD4,450 (RM17,550) in Asian trading, a move that may seem counterintuitive given rising geopolitical tensions in West Asia.
He noted that any disruption to oil exports from Kharg Island could cause a significant supply shock to global oil markets.
“However, the decline reflects broader market dynamics rather than a breakdown in gold’s safe-haven role,” he told BERNAMA.
Innes explained that markets are increasingly focused on the inflationary impact of higher energy prices under the current environment.
He said rising oil prices tend to push global bond yields higher and strengthen the US dollar, both of which create headwinds for gold in the short term.
Additionally, he said periods of rapid market repricing often trigger portfolio deleveraging.
“Gold, being one of the most liquid assets, is frequently sold to raise cash during these episodes, even when geopolitical risks are elevated.
“It is reacting to the knock-on effects – namely higher oil prices, rising yields, and tighter dollar liquidity – which are currently dominating price action,” he said.
At the close, the spot-month March 2026 contract dropped to USD4,440.2 (RM17,451) per troy ounce from USD4,566.8 (RM17,948) on Wednesday, April 2026 declined to USD4,460.2 (RM17,529) per troy ounce from USD4,586.9 (RM18,026), and May 2026 reduced to USD4,480.2 (RM17,607) per troy ounce from USD4,607.6 (RM18,109) previously.
The June, August and September 2026 contracts also settled lower at USD4,514.1 (RM17,741) per troy ounce compared with USD4,641.5 (RM 18,241) on Wednesday.
Trading volume slid to nine lots from 20 lots on Wednesday, while open interest eased to 75 contracts from 86 contracts.
Physical gold was fixed at USD4,564.55 (RM17,927) per troy ounce at the London Bullion Market Association afternoon fix on March 25, 2026. – Fatin Umairah Abdul Hamid/BERNAMA
