Sign in Subscribe
Commodity futures

Gold Futures Contract on Bursa Malaysia Derivatives: Anticipating a Downtrend

Strategic Insights

— 1 min read

Gold futures on Bursa Malaysia Derivatives are expected to maintain a downtrend next week due to the anticipation of the US Federal Reserve's rate-cutting trajectory being reinforced by the upcoming September non-farm payroll report. Markets are cautious, awaiting the outcome of the report, which could bring significant changes to the gold market. Meanwhile, the spot month of August 2024 recorded a price increase, while other months, including September and October, also saw rises. Volume and open interest declined, indicating a decrease in market activity.

Key Takeaways:

  • The gold futures contract on Bursa Malaysia Derivatives is likely to remain on a downtrend next week, awaiting the impact of the September non-farm payroll report on the US Federal Reserve's rate-cutting trajectory.
  • Markets are cautious, anticipating buyers to step in on any gold price dips but also expecting significant changes from the upcoming US jobs report.
  • The spot month of August 2024 saw a price increase to $2,520 per troy ounce, with other months, including September and October, also experiencing rises.
  • Stephen Innes, managing director of SPI Asset Management, recommends monitoring a specific range between $2,490 and $2,530 per troy ounce for gold next week.
  • The price of physical gold stood at $2,483 per troy ounce according to the London Bullion Market Association's afternoon fix on August 22.
  • Volume slipped to 67 lots from 244 lots last week, while open interest narrowed to 58 contracts against 135 contracts previously.
  • The gold prices for various months, including September 2024 and October 2024, rose, indicating a potential increase in gold demand.

Statistics:

  • The price of gold in the spot month of August 2024 increased to $2,520 per troy ounce from $2,484.30 per troy ounce in the preceding week.
  • The price of gold in September 2024 rose to $2,523.70 per troy ounce against $2,488 per troy ounce previously.
  • The price of gold in October 2024, November 2024, December 2024, and February 2025 all settled higher at $2,526 per troy ounce from $2,488 per troy ounce previously.
  • Volume declined to 67 lots from 244 lots last week, indicating a significant decrease in market activity.
  • Open interest narrowed to 58 contracts against 135 contracts previously, further indicating decreased market activity.

Sources:

  • BERNAMA News Agency, 24 Aug 2024
  • SPI Asset Management
  • London Bullion Market Association

Read more