Gold Futures Tumble on US Interest Rate Uncertainty
Gold futures on Bursa Malaysia Derivatives closed lower on Monday as uncertainty over the US Federal Reserve's interest rate outlook weighed on the precious metal.
Quintex Intel global strategist Stephen Innes said investors remained cautious, assessing 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 also attributed gold's weakness to softer oil prices and a modest unwinding of the geopolitical risk premium. '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.
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.