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Commodity futures

Gold Futures Expected to Trade Range-Bound Amid Ongoing Volatility

Strategic Insights

— 1 min read

The gold market is likely to experience a stable trading period next week, according to an analyst, due to opposing forces affecting the precious metal. Stephen Innes, managing partner of SPI Asset Management, suggests that the relentless stock market rally in the US and expectations of a US Federal Reserve rate cut are both supporting and capping gold's momentum. Meanwhile, the soft US dollar is also playing a crucial role, as any sudden shift in macro positioning could lead to a significant breakthrough in the gold market.

Key Takeaways:

  • The gold market is expected to trade range-bound next week, with prices potentially stabilizing between US$3,260 and US$3,340 per troy ounce.
  • The ongoing rally in the US stock market and expectations of a US Federal Reserve rate cut are supporting gold's momentum, but also capping its upside.
  • The soft US dollar is a significant factor influencing gold prices, with any shift in macro positioning potentially leading to a breakthrough.
  • Trading volume decreased to 173 lots from 321 lots in the preceding week, while open interest climbed to 36 contracts from 31 contracts.
  • The August, September, and October 2025 contracts all fell to US$3,370.80 per troy ounce from US$3,388.60 per troy ounce last Friday.
  • Physical gold was priced at US$3,318.70 per troy ounce at the London Bullion Market Association's afternoon fix on June 26.

Statistics:

  • US$3,260 - US$3,340: The expected trading range for gold futures next week.
  • US$3,340.80: The price of the spot month June 2025 contract on Thursday.
  • US$3,360: The price of the spot month June 2025 contract last Friday.
  • US$3,181.70: The price of physical gold at the London Bullion Market Association's afternoon fix on June 26.
  • 173 lots: The trading volume next week, a decrease from 321 lots in the preceding week.
  • 36 contracts: The open interest next week, an increase from 31 contracts in the preceding week.

Sources:

  • BERNAMA News Agency, June 28, 2025
  • SPI Asset Management, as quoted in BERNAMA News Agency, June 28, 2025
  • London Bullion Market Association, June 26, 2025

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