Gold Futures Ends Lower On Strengthening Of Ringgit Against Greenback
Kuala Lumpur-Malaysia (Nov 19) Gold futures contracts on Bursa Malaysia Derivatives continue to extend their losses today as the strengthening ringgit to the US dollar outpaced expectations of a US interest rate hike.
At 5 pm, the ringgit was quoted at 4.3410/3480 against the greenback from 4.3870/3950 on Wednesday.
Phillip Futures Sdn Bhd dealer Ong Su Ling said the US Federal Reserve meeting minutes released yesterday, continued to flag December as a likely time for interest rates to rise after seven years near zero.
"Rising rates generally weigh on gold prices, as they lift the opportunity cost of holding non-interest bearing assets.
"Local gold prices are expected to trade lower if the ringgit continues to appreciate.
"We locate the immediate support level at RM150 a gramme and resistance at RM153 a gramme," she added.
At the close, November 2015 fell 30 ticks to RM151.40 a gramme, while December 2015, January 2016 and February 2016 fell ten ticks each to RM152.00, RM152.00 and RM152.50 a gramme respectively.
Volume dropped to 10 lots worth RM150,000 from Wednesday's 51 lots worth RM770,000, while open interest declined to 837 contracts from 858 contracts.
The physical price of gold at 5 pm stood at RM145.26 a gramme, down 93 sen from RM146.19 a gramme on Wednesday.