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Commodity futures

Gold Futures on Bursa Malaysia Derivatives Expected to Trend Higher

Strategic Insights

— 2 min read

Gold futures on Bursa Malaysia Derivatives are projected to continue their upward trajectory, with a potential gain of 2.5 to 3.0 per cent anticipated in the coming week. This prediction was made by Stephen Innes, managing partner of SPI Asset Management, who pointed out that the next 48 to 72 hours will be crucial in determining the direction of gold prices. Geopolitical tensions in the Middle East and potential shifts in US Federal Reserve policy are expected to play significant roles in shaping the gold market. Despite rising expectations of a policy shift, gold prices are likely to remain supported by weak US labour data and a disinflation narrative.

Key Takeaways:

  • Gold futures on Bursa Malaysia Derivatives are expected to trend higher next week, with potential gains estimated in the 2.5 to 3.0 per cent range.
  • The upcoming 48 to 72 hours will be crucial in determining the direction of gold prices, with Middle East tensions and potential US Federal Reserve policy shifts expected to play significant roles.
  • Weak US labour data and a disinflation narrative are likely to support gold prices despite rising expectations of a policy shift.
  • The spot month June 2025 contract increased to US$3,430.2 per troy ounce from US$3,371.80, and the July 2025 contract went up to US$3,438.7 per troy ounce from US$3,371.80 per troy ounce.
  • Trading volume increased to 260 lots from 241 lots recorded in the preceding week, while open interest reduced to 50 contracts from 122 contracts.
  • The London Bullion Market Association's afternoon fix on June 12 priced physical gold at US$3,391.40 per troy ounce.

Statistics:

  • Potential gain of 2.5 to 3.0 per cent in gold futures on Bursa Malaysia Derivatives expected in the coming week.
  • 48 to 72 hours crucial in determining the direction of gold prices.
  • Spot month June 2025 contract increased to US$3,430.2 per troy ounce from US$3,371.80.
  • July 2025 contract went up to US$3,438.7 per troy ounce from US$3,371.80 per troy ounce.
  • Trading volume increased to 260 lots from 241 lots recorded in the preceding week.
  • Open interest reduced to 50 contracts from 122 contracts.
  • Physical gold priced at US$3,391.40 per troy ounce according to the London Bullion Market Association's afternoon fix on June 12.

Sources:

  • BERNAMA News Agency, "Gold futures on Bursa Malaysia Derivatives expected to trend higher next week" (June 14, 2025)
  • BERNAMA News Agency, "Gold futures on Bursa Malaysia Derivatives expected to trend higher next week" (June 14, 2025)

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