Kuala lumpur: The gold futures contract on Bursa Malaysia Derivatives is anticipated to decrease in value next week due to the strengthening sentiment of the US dollar.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd's chief economist, Dr. Mohd Afzanizam Abdul Rashid, noted that spot gold prices have been nearing the US$5,000 per troy ounce mark, influenced by the solidifying US dollar and developments regarding the new United States Federal Reserve (Fed) chairman.

Dr. Mohd Afzanizam highlighted that Kevin Warsh, a former Federal Reserve governor, has been suggested as the next Fed chairman. Warsh is known for his hawkish stance on inflation during his tenure from 2006 to 2011. This speculation regarding leadership changes has contributed to spot gold prices reaching a new record high of around US$5,500 per ounce this week, prompting traders to secure their gains.

The economist predicts that spot gold prices will remain between US$4,950 and US$4,970 per troy ounce in the coming week as market participants focus on upcoming economic data releases, such as the non-farm payrolls (NFP) report and the Institute for Supply Management (ISM) indices. Recently, the January 2026 gold futures contract increased to US$5,063.50 per troy ounce from US$4,914.80 per troy ounce. Similarly, the February 2026 contract rose to US$5,062.60 from US$4,928.00, and the March 2026 contract surged to US$5,080.90 from US$4,945.90.

Further, the April, June, and August 2026 contracts also experienced gains, settling at US$5,097.70 per troy ounce compared to US$4,963.70 previously. The weekly trading volume saw an increase to 1,705 lots from 1,331 lots, with open interest decreasing to 332 contracts from 567 contracts in the previous week. The London Bullion Market Association fixed the physical gold price at US$5,405.00 per troy ounce during the afternoon fix on January 29, 2026.