KUALA LUMPUR: The gold futures contract on Bursa Malaysia Derivatives is expected to see cautious trading next week as investors await clearer details on United States (US) President Donald Trump’s policies. SPI Asset Management managing director Stephen Innes noted that central banks in emerging markets are likely to continue purchasing gold during price dips, with Asian investors also taking advantage of lower prices to hedge against trade tensions and potential local currency depreciation.

According to BERNAMA News Agency, Innes suggested that greater clarity on fiscal expansion and trade strategies in the coming months could positively impact gold prices. In the meantime, gold is anticipated to move in alignment with the US dollar, acting as a proxy for anticipated US Federal Reserve rate cuts. Weaker economic data would be favorable for gold in this context.

Innes projected that gold will trade between US$2,670 and US$2,730 per troy ounce. On a Friday-to-Friday basis, the spot month November 2024 contr
act ended the week lower at US$2,692.70 per troy ounce, down from US$2,777.20 per troy ounce the previous week. Similarly, the December 2024 contract fell to US$2,705.60 per troy ounce from US$2,777.20 the prior week.

The January 2025, February 2025, and April 2025 contracts also settled lower at US$2,705.60 per troy ounce, compared to US$2,777.20 per troy ounce last week. There was a notable increase in trading activity, with volume jumping to 82 lots from 32 lots the previous week, while open interest rose to 31 contracts from eight contracts.

The London Bullion Market Association’s afternoon fix on Nov 7, the price of physical gold stood at US$2,692 per troy ounce.