Kuala Lumpur: The gold futures market on Bursa Malaysia Derivatives may experience a near-term correction next week as traders are tempted to lock in profits amid record-high prices.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid noted that gold prices have remained above US$3,000 per ounce since March 17, driven by rising global economic uncertainties. He added that the United States Federal Reserve has indicated the possibility of two interest rate cuts this year, following the latest projection during the Federal Open Market Committee meeting on March 19.

On a Friday-to-Friday basis, the spot-month March 2025 contract increased to US$3,034.20 per troy ounce from US$2,999.60 per troy ounce previously, while the April 2025 contract rose to US$3,044.10 per troy ounce from US$3,009.90 per troy ounce. Meanwhile, the May 2025, June 2025, and August 2025 contracts surged to US$3,054.10 per troy ounce from US$3,019.90 per troy ounce last week.

Despite the rising prices, the volume of gold futures traded dropped significantly to 123 lots this week from 419 lots last week, with open interest declining to 87 contracts from 454 contracts previously. According to the London Bullion Market Association’s afternoon fix on March 20, physical gold was priced at US$3,038.15 per troy ounce.