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Commodity futures

Gold Futures Contracts End Higher on Subtle Shifts in Global Demand

Strategic Insights

— 1 min read

Gold futures contracts on Bursa Malaysia Derivatives ended with a boost on Friday, driven by the steady accumulation of gold reserves by China, contrary to daily market fluctuations. The subtle shifts in global demand were further hinted at by the performance of US stocks, which remained strong despite lacking broad economic confidence. Meanwhile, bond markets indicated that long-standing assumptions were beginning to break down, adding to the uncertainty.

Key Takeaways:

  • The US stocks remained strong due to top performers and artificial intelligence hype, despite lacking broad economic confidence.
  • The steady accumulation of gold reserves by China, for the eighth consecutive month, was an "unmissable signal that official buyers are still accumulating" gold.
  • The addition of gold to China's reserves supported the gold prices, despite daily market fluctuations.
  • The spot-month July 2025 contract rose to US$3,360.0 per troy ounce from US$3,337.50 per troy ounce.
  • The August 2025 contract increased to US$3,378.3 per troy ounce from US$3,355.70, and the September 2025 contract improved to US$3,384.20 per troy ounce.
  • Physical gold was priced at US$3,318.50 per troy ounce, based on the London Bullion Market Association's afternoon fix on July 17, 2025.
  • Trading volume declined to 12 lots from 57 lots, while open interest decreased to 67 contracts from 133 contracts previously.

Statistics:

  • US$3,360.0 per troy ounce: the final price of the spot-month July 2025 gold futures contract.
  • US$3,378.3 per troy ounce: the final price of the August 2025 gold futures contract.
  • US$3,384.20 per troy ounce: the final price of the September 2025 gold futures contract.
  • US$3,413.40 per troy ounce: the final price of the October 2025, December 2025, and February 2026 gold futures contracts.
  • 12 lots: the trading volume on Bursa Malaysia Derivatives on July 18, 2025.
  • 57 lots: the trading volume on Bursa Malaysia Derivatives on the previous day.
  • 133 contracts: the open interest on Bursa Malaysia Derivatives on the previous day.
  • 67 contracts: the open interest on Bursa Malaysia Derivatives on July 18, 2025.
  • 7 consecutive months: China's accumulation of gold reserves.

Sources:

  • BERNAMA News Agency (July 18, 2025)
  • SPI Asset Management (as quoted by BERNAMA News Agency)
  • London Bullion Market Association (afternoon fix on July 17, 2025)

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