Gold Futures Likely To Trade Higher Next Week, Seen Hitting US$2,800 Ahead Of US Election
By Zufazlin Baharuddin
KUALA LUMPUR, Oct 26 (Bernama) -- The gold futures contract on Bursa Malaysia Derivatives is expected to trade higher next week as investors brace for heightened volatility ahead of the US presidential election.
SPI Asset Management managing director Stephen Innes said investors are watching the upcoming US presidential election with mounting unease, particularly as a Republican Party victory could bring higher US debt levels and a potentially destabilising trade war. “Concerns of US debt spiralling and economic volatility keep gold shining brightly in these uncertain times, and the strong bid is expected to remain intact heading into next week as safe-haven demand holds steady,” he told Bernama.
Hence, Innes expects gold to hit US$2,800.00 per troy ounce ahead of the election which will be held on Nov 5.
On a Friday-to-Friday basis, the spot month October 2024 contract ended the week higher at US$2,720.90 per troy ounce from US$2,718.00 last week and November 2024 rose to US$2,737.20 compared to US$2,733.00 previously.
The December 2024, January 2025 and February 2025 notes all settled higher at US$2,745.30 per troy ounce from US$2,741.10 last week.
Volume added to 173 lots from 59 lots last week while open interest narrowed to 21 contracts against 40 contracts previously.
According to the London Bullion Market Association’s afternoon fix on Oct 24, the price of physical gold stood at US$2,732.00 per troy ounce.
-- BERNAMA