KUALA LUMPUR (BERNAMA) – The gold futures contract on Bursa Malaysia Derivatives is expected to trade higher next week, taking advantage of the better performance on the United States (US) COMEX gold market.
Phillip Futures Sdn Bhd dealer Muhammad Fawwaz Zakaria said the benchmark COMEX gold futures would likely reach USD2,100 an ounce next week, crossing the key USD2,000 psychological mark, on worries over the COVID-19 cases in the US.
“If the number of cases continue to rise, this will spur bullion’s safe-haven allure,” he told Bernama.
He said investors would also keep an eye on the US-China trade talks, which will be held on August 15.
Gold will be attractive when political and economic uncertainties are high, and interest rates are low.
The COMEX gold futures spot month hit an all-time high of USD2,069.21 per ounce on Thursday, following the spike in COVID-19 cases.
On a Thursday-to-Friday basis, August 2020, September 2020 and October 2020 all added 211 ticks to MYR266.55, MYR265.00 and MYR264.90 a gramme, respectively, while November 2020 ended on Friday at MYR266.25 a gramme.
Weekly turnover was one lot worth MYR27,150 compared with one lot worth MYR25,600 previously, while open interest narrowed to 38 contracts from 41 contracts.
Meanwhile, the price of physical gold stood at MYR268.53 a gramme on Friday compared with MYR257.65 a gramme on Thursday last week.