Gold Futures Likely To Trade Higher Next Week As US Tariff Uncertainty Spurs Safe-haven Demand
By Zufazlin Baharuddin
KUALA LUMPUR, May 31 (Bernama) -- Gold futures on Bursa Malaysia Derivatives are likely to trade higher next week as investors may shift to safe-haven assets amid renewed market uncertainty on US tariff policy developments, said SPI Asset Management managing partner Stephen Innes.
This follows a US federal appeals court temporarily reinstating President Donald Trump’s tariffs after a lower court ruling had struck them down.
Earlier, the US Court of International Trade had ruled that the tariffs announced by Trump were illegal. However, the Trump administration challenged the ruling, resulting in the temporary restoration of the tariffs while the appeal process runs its course.
Hence, Innes said the precious metal could potentially test the US$3,340 per troy ounce level.
"We may see gold edge up by around two per cent, but the spotlight remains on the US dollar, which will be the main driver. A weaker greenback would be supportive of gold prices,” he told Bernama.
In addition, he said investors also closely monitor US economic indicators, particularly labour market data and inflation figures, including nonfarm payrolls, the unemployment rate, and the Institute for Supply Management manufacturing index, for further insight into the movement of precious metals next week.
On a Friday-to-Friday basis, the spot month May 2025 contract decreased to US$3,293.60 per troy ounce from US$3,336.50 per troy ounce, and the June 2025 contract went down to US$3,312.20 per troy ounce from US$3,349.70 per troy ounce.
The July 2025, August 2025, and October 2025 contracts all weakened to US$3,325.90 per troy ounce from US$3,363.40 per troy ounce.
Trading volume dropped to 256 lots from the 1,854 lots recorded in the preceding week, while open interest rose to 139 contracts from 82 contracts.
According to the London Bullion Market Association’s afternoon fix on May 29, physical gold was priced at US$3,312.40 per troy ounce.
-- BERNAMA