PETALING JAYA: The gold futures contract on Bursa Malaysia Derivatives is expected to see cautious trading this week, tracking external developments as well as the United States Comex performance, an analyst says.
SPI Asset Management managing director Stephen Innes said the depreciation of the US dollar following the US Federal Open Market Committee (FOMC) press conference had been short-lived.
“In Asian trading, the US dollar index surpassed its pre-FOMC high. This resurgence in the US dollar’s strength affected demand for gold as a safe-haven asset.
“As a result, gold will likely be absent in the short term,” he told Bernama.
During the week just ended, gold futures traded mostly lower, tracking the performance of the US Comex gold futures and the stronger US dollar.
Gold futures volume in the local market rose to 121 lots from 105 lots in the previous week.
