Gold Futures Likely To Be Bullish Next Week
KUALA LUMPUR, Oct 19 (Bernama) -- The gold futures contract on Bursa Malaysia Derivatives is expected to be bullish next week, driven by expectations of a prolonged low-interest rate environment globally, an analyst said.
He said that a low-interest rate environment is beneficial for gold because it reduces the opportunity cost of holding non-yielding assets like gold.
“Investors expect these low rates to persist, which fuels demand for gold as a safe-haven asset,” he told Bernama.
On a Friday-to-Friday basis, the spot month October 2024 contract ended the week higher at US$2,718.00 per troy ounce from US$2,645.90 last week and November 2024 rose to US$2,733.00 compared to US$2,667.70 previously.
The December 2024, January 2025 and February 2025 notes all settled higher at US$2,741.10 per troy ounce from US$2,669.10 last week.
Volume dipped to 59 lots from 88 lots last week while open interest narrowed to 40 contracts against 53 contracts previously.
According to the London Bullion Market Association’s afternoon fix on Oct 17, the price of physical gold stood at US$2,688.85 per troy ounce.
-- BERNAMA