Gold Futures on Bursa Malaysia Derivatives Expected to Trade Higher

Strategic Insights -

Gold futures on Bursa Malaysia Derivatives are predicted to surge next week, with Stephen Innes, managing partner at SPI Asset Management, anticipating prices to trade within the range of US$3,200 to US$3,250 due to concerns over the US fiscal situation. Rising US debt levels and potential global political standoffs may drive renewed interest in gold, with Innes suggesting that investors are gradually shifting towards the 'sell fiat, buy metal' trade. Despite a slight easing of gold prices this week, Innes views the current pullback as a buying opportunity rather than an exit signal.

Key Takeaways:

  • Gold futures on Bursa Malaysia Derivatives are expected to trade higher next week, with prices potentially reaching US$3,250.
  • Concerns over the US fiscal situation, including rising debt levels and potential global political standoffs, may drive renewed interest in gold.
  • Investor psychology is shifting towards the 'sell fiat, buy metal' trade, particularly as confidence in traditional currencies weakens.
  • The current pullback in gold prices is being treated as a buying opportunity rather than an exit signal.
  • Stephen Innes, managing partner at SPI Asset Management, attributes rising gold prices to market uncertainty and investor sentiment.
  • Trading volume on Bursa Malaysia Derivatives bounced to 1,150 lots from the 455 lots recorded in the preceding week.
  • Open interest on the exchange edged up to 49 contracts from 42 contracts.

Statistics:

  • The spot month May 2025 contract eased to US$3,218.10 per troy ounce from US$3,335.10.
  • The June 2025 contract slid to US$3,232.0 from US$3,348.10.
  • The July 2025, August 2025, and October 2025 contracts all slipped to US$3,245.70 per troy ounce from US$3,348.10.
  • Trading volume increased by 400 lots, from 455 to 1,150.
  • Open interest increased by 7 contracts, from 42 to 49.

Sources:

  • SPI Asset Management managing partner Stephen Innes.
  • BERNAMA News Agency (17 May 2025).
  • London Bullion Market Association's afternoon fix on May 15.