KUALA LUMPUR, 22 August 2025 – Gold futures on Bursa Malaysia Derivatives ended lower on Friday, mirroring the sentiment in U.S. markets as global investors braced for Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium. The retreat underscores cautious positioning amid heightened uncertainty on the outlook of U.S. monetary policy.
Market Dynamics & Performance
- Bursa Malaysia Derivatives
- Spot-month August 2025 contract slipped to US$3,327.30 per troy ounce, down from US$3,339.10 the previous day.
- September 2025 saw a dip to US$3,332.70, October fell to US$3,362.20, and November eased to US$3,379.00.
- December 2025 and later contracts also declined, with the December futures settling at US$3,399.40, down from US$3,410.60.
- Trading volume increased to 17 lots from 7 the day before, and open interest rose to 56 contracts from 45.
- U.S. Markets
- Spot gold dropped 0.3% to US$3,329.19 per ounce, while U.S. December futures fell 0.3% to US$3,372.10.
What’s Driving the Pullback?
- U.S. Dollar Strength
The U.S. dollar index climbed to a two-week high, making dollar-denominated gold more expensive and less attractive to international buyers. - Dovish Bets Unraveling
Markets have scaled back expectations for near-term rate cuts. The probability of a September rate reduction has declined to around 71% from over 90% a week ago. - Data & Geopolitical Variables
Rising U.S. jobless claims, dovish caution from Fed officials, and persistent inflation above target are adding to the complexity. Meanwhile, geopolitical tensions, including the Russia-Ukraine conflict, continue to influence safe-haven demand.
