Gold Futures on Bursa Malaysia Derivatives Expected to Trade Range-Bound

Strategic Insights -

Gold futures on Bursa Malaysia Derivatives are poised to trade range-bound with an upward bias next week, according to Stephen Innes, managing partner of SPI Asset Management. This expectation is driven by ongoing US fiscal concerns, a softer US dollar, and the precious metal's resilience in the face of outflows from US-based gold exchange-traded funds (ETFs). Innes suggests that the lack of demand for US Treasuries is pressuring the dollar and nudging capital back into gold, despite speculation that the tariff narrative has peaked and trade tensions may be easing.

Key Takeaways:

  • Gold futures on Bursa Malaysia Derivatives are expected to trade range-bound with an upward bias next week, according to Stephen Innes of SPI Asset Management.
  • The precious metal's performance will be supported by ongoing US fiscal concerns and a softening US dollar.
  • Outflows from US-based gold exchange-traded funds (ETFs) are continuing to cap rallies, fueled by speculation that the tariff narrative has peaked and trade tensions may be easing.
  • The lack of demand for US Treasuries is pressuring the dollar and quietly nudging capital back into gold.
  • The main driving force behind the precious metal's resilience is the ongoing US fiscal concerns.
  • A test of the US$3,350 per troy ounce level is possible, especially if US data underwhelms or Treasury supply continues to weigh.
  • Trading volume bounced to 1,854 lots from 1,150 lots in the preceding week.
  • Open interest rose to 82 contracts from 49 contracts.

Statistics:

  • Gold futures on Bursa Malaysia Derivatives are expected to trade within a range of US$3,300 per troy ounce to US$3,350 per troy ounce next week.
  • The spot month May 2025 contract increased to US$3,336.50 per troy ounce from US$3,218.10 per troy ounce.
  • The June 2025 contract went up to US$3,349.70 per troy ounce from US$3,232.0 per troy ounce.
  • The July 2025, August 2025, and October 2025 contracts all improved to US$3,363.40 per troy ounce from US$3,245.70 per troy ounce.
  • Trading volume doubled to 1,854 lots from the preceding week.
  • Open interest increased to 82 contracts from 49 contracts.
  • The London Bullion Market Association's afternoon fix on May 22 priced physical gold at US$3,284 per troy ounce.

Sources:

  • BERNAMA News Agency
  • SPI Asset Management
  • London Bullion Market Association