Gold Futures Plummet on Stronger Dollar and Hawkish Fed Comments

The gold futures market on Bursa Malaysia Derivatives closed lower on Tuesday due to a stronger US dollar. The US dollar was firmer against major currencies, contributing to selling pressure on gold, according to Stephen Innes, global strategist at Quintex Intel.

Innes attributed the stronger dollar to hawkish comments from US Federal Reserve officials, particularly Chicago Fed president Austan Goolsbee, who warned that supply shocks and strong spending could keep inflation persistent. He noted that markets are still trying to determine the Fed's interest rate path beyond year-end, with foreign exchange traders leaning towards a more hawkish outlook than previously expected.

The gold price was firmer during the New York session but sold off steadily throughout the Asian session, mirroring Monday's trading pattern. Innes observed that Asian markets appeared more optimistic about the upcoming meeting between US President Donald Trump and Chinese President Xi Jinping, which could ease East-West geopolitical tensions.