KUALA LUMPUR: Gold futures on the Bursa Malaysia Derivatives are expected to trade higher this week, ranging between US$1,965 and US$1,995 per troy ounce, an analyst said.
SPI Asset Management managing director Stephen Innes said the on-going debate on whether the United States (US) Federal Reserve (Fed) would tighten its monetary policy augurs well for gold.
“Markets are also expecting a 65 per cent chance of a recession in the US, making gold an essential defensive asset in most portfolios.
“Thus with the recession signal still flashing red, it is unlikely that gold will move back to below $1,950 per troy ounce next (this) week, and this is compounded by the fact that the market continues to expect the US dollar to weaken,” he told Bernama.
He also said gold could move further up to US$2,000 per troy ounce if there are any signs of weakness in the US economic data to be released this week.
For the week just ended, domestic gold futures traded mostly higher with a total of 320 lots recorded throughout the week.
On a weekly basis, spot month March 2023 rose to US$1,978.80 per troy ounce from US$1,991.10 per troy ounce two weeks earlier.
Meanwhile, April 2023, May 2023, June 2023, August 2023 and October 2023 all settled higher at US$1,985.20 per troy ounce from US$1,997.90 per troy ounce previously. The price of physical gold stood at US$1,965.80 per troy ounce as published by the London Bullion Market Association afternoon fix on March 30, 2023. – BERNAMA
