By K. Naveen Prabu
KUALA LUMPUR, June 20 (Bernama) -- Gold futures on Bursa Malaysia Derivatives are expected to remain volatile next week as investors await the release of the core personal consumption expenditures (core PCE) price index for clues on the US Federal Reserve's (Fed) interest rate trajectory.
SPI Asset Management managing partner Stephen Innes said with the Fed now appearing more adaptive and increasingly sensitive to incoming inflation data, every major economic release will matter, but core PCE will be the key event for the gold and rates markets.
“Next week will be heavily data dependent,” he told Bernama.
Innes also said a stronger-than-expected inflation reading could bolster the US dollar, push yields higher and increase the risk of gold testing the US$4,000 per troy ounce level.
“That said, I would not view a move towards US$4,000 as the end of the gold story. It could become an attractive entry point for Asian investors, particularly if domestic currencies weaken alongside a stronger US dollar,” he said.
Innes added that gold investors should brace for heightened volatility and the possibility of a further washout before medium-term buyers return to the market.
On a week-on-week basis, the spot-month June 2026 contract fell to US$4,170.80 per troy ounce from US$4,232.70 per troy ounce at last Friday’s close; July 2026 slid to US$4,184.90 per troy ounce from US$4,249.30 per troy ounce last week, and August 2026 fell to US$4,205.50 per troy ounce from US$4,265.70 per troy ounce previously.
The September 2026 contract slipped to US$4,210.00 per troy ounce from US$4,270.20 per troy ounce, and October 2026 eased to US$4,229.10 per troy ounce from US$4,289.30 per troy ounce previously.
Weekly trading volume went down to 47 lots from 104 lots, while open interest decreased to 87 contracts from 89 contracts a week earlier.
Physical gold was fixed at US$4,236.15 per troy ounce at the London Bullion Market Association's afternoon fix on June 18, 2026.
-- BERNAMA
