By Rosemarie Khoo Mohd Sani

KUALA LUMPUR, April 24 (Bernama) -- Gold futures contract on Bursa Malaysia Derivatives closed lower today with investors’ attention drawn to the crucial United States (US) macroeconomic data, including its gross domestic product (GDP) figures.

SPI Asset Management managing director Stephen Innes said anticipation surrounds the potential impact of the macroeconomic data on the outlook for interest rate cuts throughout 2024.

He said there is a prevailing sentiment that stronger-than-expected US data could narrow the window for interest rate cuts further, driving up yields and bolstering the US dollar.

“Given their historical inverse relationship with rising yields and a strengthening dollar, such a scenario may exert downward pressure on gold prices,” Innes said.

The S&P Global Manufacturing PMI dropped to 49.9 in April from 51.9 in March, highlighting a contraction in business activities in the manufacturing sector.

He also said the recovery in the gold market was influenced by the concern over the US Senate’s approval to provide a combined US$95 billion aid package to Taiwan, Ukraine and Israel which could restoke geopolitical tensions. 

At the close, the spot month April 2024 contract eased to US$2,328.90 per troy ounce from US$2,331.40 at Wednesday’s close, while the May 2024 contract dropped to US$2,345.00 from US$2,347.50 per troy ounce previously.

The June 2024, July 2024, August 2024 and October 2024 contracts all settled lower at US$2,350.20 per troy ounce from US$2,352.70 yesterday.

Volume eased to eight lots from 14 on Wednesday, while open interest decreased to 23 contracts versus 28 previously.

According to the London Bullion Market Association’s afternoon fix on April 24, the price of physical gold stood at US$2,320.25 per troy ounce.

-- BERNAMA