Gold Futures Extend Gains on Fiscal Concerns and Geopolitical Tensions

Strategic Insights -

Fiscal concerns in the United States and geopolitical tensions worldwide have driven gold futures on Bursa Malaysia Derivatives to extend their gains on Wednesday. Analysts point to the metal's resilience in the face of firm dollar and rising US Treasury yields as a key factor in its rise. The global geopolitical situation, particularly China's military parade, has traders and investors bracing for a potential increase in gold prices. Spot gold prices have risen to over $3,500 per ounce, with the September 2025 contract closing at $3,553.70 per troy ounce.

Key Takeaways:

  • The September 2025 gold contract increased to $3,553.70 per troy ounce from Tuesday's close of $3,500.20.
  • The October 2025 contract rose to $3,572.30 per troy ounce from Tuesday's close of $3,519.30.
  • The November 2025 contract climbed to $3,589.10 per troy ounce from $3,536.10.
  • The December 2025 contract advanced to $3,609.50 per troy ounce from $3,487.10.
  • The global geopolitical situation, particularly China's military parade, is on traders' and investors' radar.
  • Spot gold prices have risen to over $3,500 per ounce.
  • The striking factor in gold's rise was its ability to rise further despite resilience in US Treasury yields and the firm dollar.
  • The Federal Open Market Committee (FOMC) will meet on September 16-17 to discuss labour market data.
  • Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid expects gold prices to ratchet up due to geopolitical tensions.
  • SPI Asset Management managing director Stephen Innes said central banks will be under scrutiny post-FOMC meeting.

Statistics:

  • The September 2025 gold contract closed at $3,553.70 per troy ounce.
  • The October 2025 contract rose to $3,572.30 per troy ounce.
  • The November 2025 contract climbed to $3,589.10 per troy ounce.
  • The December 2025 contract advanced to $3,609.50 per troy ounce.
  • Trading volume increased to 134 lots from 36 lots previously.
  • Open interest rose to 160 contracts from 64 contracts previously.
  • Spot gold prices have risen to over $3,500 per ounce.

Sources:

  • BERNAMA News Agency, "Gold futures extend gains on fiscal concerns" (03 Sep 2025).
  • Interview with Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid.
  • Interview with SPI Asset Management managing director Stephen Innes.