Gold futures to continue uptrend
KUALA LUMPUR: The gold futures contract on Bursa Malaysia Derivatives is expected to continue its uptrend, tracking the stronger performance on the US Comex amid bullish sentiment, an analyst said.
SPI Asset Management managing director Stephen Innes said the technical and fundamental aspects of gold appear favourable, supported by various factors such as increased bullion demand from the People’s Bank of China (PBoC), expectations of US Federal Reserve rate cuts and a weaker US dollar.
“These factors contribute to bullish sentiment surrounding the gold market, which is likely to remain favourable in the near term,” he told Bernama.
Given the current momentum which indicates the upside trend, Innes noted that the precious metal prices could breach the US$2,200 per troy ounce mark in the upcoming week.
During the week just ended, gold futures traded higher tracking the positive performance of the US Comex gold futures and weakened US dollar.
The gold futures volume in the local market improved to 192 lots compared to 58 lots in the previous week while open interest widened to 63 contracts from 35 contracts a week ago.
On a Friday-to-Friday basis, the spot month March 2024 contract rose to US$2,176.10 per troy ounce from US$2,053.80 per troy ounce last week.
Contracts for April 2024, May 2024, June 2024, August 2024, and October 2024 all settled higher at US$2,186.40 per troy ounce against US$2,063.80 per troy ounce a week earlier.
The price of physical gold stood at US$2,153.45 per troy ounce, according to the London Bullion Market Association’s afternoon fix on March 7.