KUALA LUMPUR: Gold futures contracts on Bursa Malaysia Derivatives extended its gain to close higher yesterday, underpinned by higher demand amid escalating political tension between Russia and Ukraine.
Phillip Futures Sdn Bhd dealer Lim Eng Wee said Russian military actions along Ukraine's border and its retaliation over the Western economic sanction had sent equities lower.
“The actions had driven investors away from higher-risks assets and propelled the demand for a relatively safer assets like bonds and gold,” he told Bernama.
He said physical buying also slowed down after prices rose above US$1,300 an ounce and remained sluggish on expectation of further drop in prices.
At the close, August 2014, September 2014, October 2014 and November 2014 rose 27 ticks each to close at RM134.95, RM135.15, RM135.65 and RM135.95 a gramme respectively.
Open positions fell to 4,585 contracts from 4,823 on Wednesday while turnover slipped to 561 lots worth RM7.60 million from 1,633 lots worth RM21.80 million previously.
The physical price of gold was up RM1.52 to RM1.52 a gramme from RM128.56 a gramme on Wednesday. Bernama