adminKUALA LUMPUR, Sept 22 (Bernama) — Gold futures on Bursa Malaysia Derivatives closed lower on Tuesday as a firmer United States dollar weighed on the precious metal.
Quintex Intel global strategist Stephen Innes said the US dollar was slightly firmer against major currencies, contributing to selling pressure on gold.
He said hawkish comments from US Federal Reserve (Fed) officials were the clearest driver of the stronger dollar.
“Chicago Fed president Austan Goolsbee warned that supply shocks, combined with strong spending and artificial intelligence-related investment, could keep inflation persistent.
“He added that the path back to the Fed’s 2.0 per cent inflation target may not be painless. Although he is a non-voter in 2026, Goolsbee sits near the centre of the Federal Open Market Committee (FOMC) spectrum and is therefore viewed as a useful gauge of the committee’s consensus,” Innes told Bernama.
Innes said markets were also still trying to determine the Fed’s interest rate path beyond year-end, with foreign exchange traders leaning towards a somewhat more hawkish outlook than previously expected.
Gold was firmer during the New York session but sold off steadily throughout the Asian session, mirroring Monday’s trading pattern, he said.
The selling during the Asian session was somewhat unusual because Asian markets had generally been stronger buyers of gold during periods of rising prices, he said.
Innes said Asian markets appeared more optimistic that the upcoming meeting between US President Donald Trump and Chinese President Xi Jinping could ease East-West geopolitical tensions.
Markets were, however, less convinced that possible discussions between the US and Iran on the sidelines of the United Nations General Assembly would yield meaningful progress, he said.
“If that diplomatic track disappoints and oil prices rise again, it could quickly bring inflation risks and higher yields back into focus, which would be negative for bullion,” he said.
At the close, the spot-month September 2026 contract fell to US$4,320.80 per troy ounce from US$4,350.10 on Monday, while October 2026 dropped to US$4,338.00 from US$4,367.30.
The November 2026 contract declined to US$4,354.60 per troy ounce from US$4,383.90 on Monday, while December 2026, February 2027 and April 2027 all fell to US$4,362.40 from US$4,391.70 per troy ounce previously.
Trading volume rose to 371 lots from 238 on Monday, while open interest increased to 428 contracts from 302.
Physical gold was fixed at US$4,324.25 per troy ounce at the London Bullion Market Association’s afternoon fix on Sept 21, 2026.
— BERNAMA
