malaysiangKUALA LUMPUR, The gold futures contract on Bursa Malaysia Derivatives is expected to remain in uptrend next week on growing optimism that the US Federal Reserve (Fed) will lower interest rates in September, said SPI Asset Management managing director Stephen Innes.
Besides, he said, gold is poised for the gain as it serves as a robust hedge against escalating geopolitical risks, particularly on growing tensions on Europe’s borders, with Ukraine invading into Russia.
‘The narrative suggests that gold will be in demand not only as a safeguard against US political and global geopolitical risks but also as a hedge against a potential US economic slowdown that could eventually force the Fed to cut rates more aggressively,’ he told Bernama.
Hence he expects the gold price to range between US$2,450 and US$2,490 per troy ounce.
On a Friday-to-Friday basis, spot month August 2024 jumped to US$2,484.30 per troy ounce from US$2,427.40 per troy ounce in the preceding week.
Meanwhile, September 2024, October 2024, N
ovember 2024, December 2024 and February 2025 all settled higher at US$2,488.00 per troy ounce from US$2,431.10 per troy ounce previously.
Volume rose to 244 lots from 162 lots last week, while open interest gained to 135 contracts against 56 contracts previously.
The price of physical gold stood at US$2,446.65 per troy ounce, according to the London Bullion Market Association’s afternoon fix on Aug 15.
Source: BERNAMA News Agency
