Gold Futures Close Lower Amid US Fed Rate Hike Expectations

By K. Naveen Prabu

KUALA LUMPUR, June 19 (Bernama) -- Gold futures on Bursa Malaysia Derivatives closed lower on Friday amid expectations of a possible US Federal Reserve (Fed) interest rate hike later this year, which will support the US dollar and weigh on the appeal of the precious metal.

SPI Asset Management managing partner Stephen Innes said the latest Federal Open Market Committee (FOMC) meeting unsettled gold investors after the US Federal Reserve signalled that a rate hike remained a possibility.

“In markets, the first 24 to 48 hours after a central bank surprise are often the most dangerous, and gold has been caught directly in that repricing,” he told Bernama. 

Innes added that sentiment was further weighed down after Goldman Sachs lowered its year-end gold forecast to US$4,900 from US$5,400.

“While the bank remains constructive on gold over the medium term, the revision reinforced the view that bullion could move lower before finding a more durable recovery path,” he said. 

At the close, the spot-month June 2026 contract decreased to US$4,170.80 per troy ounce from US$4,275.20 at Thursday’s close, while the July 2026 contract went down to US$4,184.90 per troy ounce from US$4,287.20. The August 2026 contract declined to US$4,205.50 per troy ounce from US$4,307.80

The September 2026 contract was US$4,210.00 per troy ounce, while the October 2026 and December 2026 contracts were both pegged at US$4,229.10 per troy ounce.

Trading volume increased to 21 lots from five on Thursday, while open interest was up to 87 contracts from 69 previously.

Meanwhile, physical gold was fixed at US$4,236.15 per troy ounce at the London Bullion Market Association afternoon fix on June 18, 2026.

-- BERNAMA