Kuala lumpur: Gold futures on Bursa Malaysia Derivatives are expected to trade sideways with a slight downward bias next week. Prices are likely to remain within the range of US$3,900 to US$4,000 per troy ounce amid uncertainty over the US interest rate outlook and persistent geopolitical tensions.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid noted that market participants have continued to price in the possibility of an interest rate hike by the US Federal Reserve as inflationary pressures could remain elevated. He mentioned that the moderation in the US Consumer Price Index and Producer Price Index in June is likely to be transitory, as crude oil prices have begun to rise following renewed US military attacks on Iran, while uncertainty persists over the reopening of the Strait of Hormuz.

Dr. Mohd Afzanizam further explained that while expectations of higher US interest rates could weigh on gold prices, the continued geopolitical uncertainty is expected to sustain safe-haven demand for the precious metal.

On a week-on-week basis, the spot-month July 2026 fell to US$4,003.50 per troy ounce on Friday from US$4,109.30 previously, while August 2026 dipped to US$4,021.70 from US$4,129.90. Additionally, the September 2026 contract dropped to US$4,034.70 from US$4,141.70.

The October and December 2026 contracts also saw a decline, falling to US$4,065.20 per troy ounce compared with US$4,172.20 at the end of the previous week. The weekly trading volume narrowed to 450 lots from 493 lots, while open interest increased to 202 contracts on Friday from 105 contracts a week earlier. Physical gold was fixed at US$3,993.55 per troy ounce at the London Bullion Market Association's afternoon fix on July 16, 2026.