Gold Futures Likely To Trade Lower Next Week

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, May 10 (Bernama) -- Gold futures on Bursa Malaysia Derivatives are expected to trade lower next week, as progress in the trade deal between the United States (US) and China -- anticipated by the end of the week -- may boost demand for the US dollar and weigh on gold prices.

“Gold remains locked into its inverse correlation with the dollar. If the US dollar pushes higher on the back of trade deal progress -- whether with China or other ASEAN economies -- gold could ease back toward US$3,300 per troy ounce,” SPI Asset Management managing partner Stephen Innes told Bernama.

However, he noted that if the greenback weakens amid US-China trade tensions or policy uncertainty, gold could rebound toward US$3,350 per troy ounce, as the yellow metal resumes its role as a hedge against geopolitical risk.

“The US-China trade talks this weekend in Switzerland will be pivotal. A constructive outcome -- anything from tariff rollbacks to procurement signals -- could paradoxically support the dollar, as risk flows favour US assets amid improving clarity.

“On the flip side, if talks collapse or stall, expect sentiment to sour quickly, with safe-haven flows potentially lifting gold and reversing the dollar’s late-week bid,” he added. 

On a Friday-to-Friday basis, the spot month May 2025 contract rose to US$3,335.10 per troy ounce from US$3,274.10 in the previous week.

Meanwhile, the June 2025, July 2025, August 2025, and October 2025 contracts all improved to US$3,348.10 per troy ounce from US$3,288.10.

Trading volume grew to 455 lots from the 352 lots recorded in the preceding week, while open interest edged up to 42 contracts from 40 contracts.

According to the London Bullion Market Association’s afternoon fix on May 8, physical gold was priced at US$3,352.30 per troy ounce.

-- BERNAMA