Higher US Real Yields Sink Gold Futures

Gold futures on Bursa Malaysia Derivatives ended lower on Monday as global gold prices declined sharply, weighed down by higher US real yields. According to Stephen Innes, a global strategist at Quintex Intel, rising US Treasury yields are pushing up the opportunity cost of holding non-yielding assets like gold.

The spot-month September 2026 contract decreased to $4,145.10 per troy ounce from $4,292.40 on Friday, while October 2026 fell to $4,161.00 from $4,308.30. The November 2026 contract went down to $4,177.80 per troy ounce from $4,325.20 on Friday.

Physical gold was fixed at $4,261.05 per troy ounce at the London Bullion Market Association's afternoon fix on Sept 25. Innes attributed the decline in gold prices to market expectations of a stronger US economy and a more aggressive US Federal Reserve policy path.