Gold Futures Expected To Trade Lower Next Week
Kuala Lumpur-Malaysia (Oct 31) Gold futures contracts on Bursa Malaysia Derivatives are expected to continue to trade lower next week on weaker demand for the precious metal.
Phillip Futures Sdn Bhd dealer Chua Zheng Liang said the local market would also be influenced by a report that the Federal Reserve (Fed) might still raise its interest rates this year, which may limit support for the gold price.
"There may be further pain to come as the Fed's intention becomes clearer after indicating this week that there is a possibility of a rate rise in December.
"However, the weakening ringgit would provide some support for the gold price," he told Bernama.
On a Friday-to-Friday basis, October 2015 fell 14 ticks to RM158.55, while November 2015, December 2015 and January 2016 decreased 21 ticks each to RM158.95, RM159.55 and RM160.05 a gramme, respectively.
Weekly turnover fell to 110 lots worth RM1.75 million from 205 lots worth RM3.28 million last week.
Open interest on Friday went up to 810 contracts from 797 contracts previously.