malaysiang
KUALA LUMPUR: Gold futures contract on Bursa Malaysia Derivatives is likely to be on cautious trading mode as investors are expected to adopt a wait-and-see stance prior to the US presidential election on Nov 5, said dealers.
According to BERNAMA News Agency, SPI Asset Management managing director Stephen Innes indicated that either outcome of the election could be bullish for gold, though a Kamala Harris win might initially cause a dip. Under Harris’ administration, the market could see an expanded deficit and a weakened US dollar over time, potentially supporting a long-term rally in gold prices.
Innes noted that geopolitical risks might increase with Harris in the White House due to her perceived softer stance on the global stage, further boosting gold’s status as a safe haven. The gold market traded mostly higher in the past week as investors sought refuge in gold amidst market volatility ahead of the US presidential election.
The market was closed on Thursday for the Deepavali public holiday. On a Fri
day-to-Friday basis, the spot month October 2024 contract ended the week higher at US$2,764.90 per troy ounce from US$2,720.90 per troy ounce last week, while November 2024 rose to US$2,777.20 per troy ounce from US$2,737.20 previously.
The December 2024, January 2025, and February 2025 notes also settled higher at US$2,777.20 per troy ounce from US$2,745.30 per troy ounce last week. Volume fell sharply to 32 lots from 173 lots last week, while open interest narrowed to eight contracts from 21 contracts previously.
According to the London Bullion Market Association’s afternoon fix on Oct 31, the price of physical gold stood at US$2,734.15 per troy ounce.
