Gold Futures Close Lower On US Interest Rate Uncertainty

By K. Naveen Prabu

KUALA LUMPUR, Sept 21 (Bernama) -- Gold futures on Bursa Malaysia Derivatives (BMD) closed lower on Monday as uncertainty over the US Federal Reserve's (Fed) interest rate outlook weighed on the precious metal.

Quintex Intel global strategist Stephen Innes said investors remained cautious as they assessed the likelihood of further rate hikes following the Fed's latest tightening move. “Markets are still trying to determine whether the Fed will deliver just one more rate hike or whether two or even three additional hikes remain possible, with the uncertainty creating some early-week nervousness across precious metals,” he told Bernama. 

Innes said gold also came under pressure as hopes for an easing of geopolitical tensions ahead of the meeting between Chinese President Xi Jinping and US President Donald Trump reduced some safe-haven demand for the precious metal. “For now, I would describe today's weakness as a combination of uncertainty over the Fed's interest rate outlook, softer oil prices and a modest unwinding of the geopolitical risk premium, rather than any single fundamental catalyst,” he added. 

At the close, the spot-month September 2026 contract fell to US$4,350.10 per troy ounce from US$4,393.20 on Friday, while October 2026 dropped to US$4,367.30 from US$4,411.20.

The November 2026 note declined to US$4,383.90 per troy ounce from US$4,428.50 on Friday, while December 2026, February 2027 and April 2027 all fell to US$4,391.70 from US$4,436.30 previously.

Trading volume went down to 238 lots from 248 lots on Friday, while open interest declined to 302 contracts from 307 contracts.

Physical gold was fixed at US$4,348.15 per troy ounce at the London Bullion Market Association’s afternoon fix on Sept 17, 2026.

-- BERNAMA