KUALA LUMPUR (BERNAMA) – The gold futures contract on Bursa Malaysia Derivatives is expected to trade in a tight range trading next week amid weaker demand, an analyst said.
SPI Asset Management managing director Stephen Innes said the demand for gold might be dampened due to the strengthening of the United States (US) dollar and higher US Treasury yields.
He expects the gold price to hover between USD1,915 and USD1,925 per troy ounce in the coming week.
“While there has been evidence of support around USD1,890 per troy ounce, buying is quite precarious especially if the US Treasury yields continue to rise,” he told Bernama.
For the week just-ended, the domestic gold futures volume was marginally lower with a total of 178 lots traded during the week compared to 179 lots in the previous week, while open interest ended at 152 contracts.
On a weekly basis, spot month of August 2023 slipped to USD1,893.00 per troy ounce from USD1,921.20 per troy ounce on Friday last week, while September 2023 declined to USD1,901.80 per troy ounce compared to USD1,931.50 per troy ounce previously.
Contracts for October 2023, November 2023, December 2023, and February 2024 settled at USD1,911.10 per troy ounce against USD1,939.70 per troy ounce last week.
The price of physical gold stood at USD1,896.35 per troy ounce as published by the London Bullion Market Association’s afternoon fix on August 17.
