Gold futures likely to trend higher this week

2. Feb, 2021

Gold futures likely to trend higher this week

KUALA LUMPUR: The gold futures on Bursa Malaysia Derivatives is expected to trend higher this week on improved demand for the precious metal.

Phillip Futures Sdn Bhd dealer Jenn Yuan said the movement in gold would be focused on the passage of a US$1.9 trillion economic stimulus package promoted by President Joe Biden’s administration.

“(There is) potential for an increase in inflation, which may be favourable to gold, ” she told Bernama.

Local gold futures were untraded most days of last week due to lack of demand.

The local market was closed on Thursday for the Thaipusam holiday.

On a Friday-to-Friday basis, gold futures on Bursa Malaysia for contract month January 2021 rose 79 ticks to RM240.95 a gramme, while February 2021, March 2021, and April 2021 increased 28 ticks each to settle at RM235.00 a gramme, respectively.

Weekly turnover was nil compared with one lot in the previous week, while open interest remained at 15 contracts.

The price of physical gold fell RM1.38 to RM232.71 a gramme on Friday from RM234.09 a gramme a week earlier.

The market will be closed today, in conjunction with Federal Territory Day and will resume tomorrow.

Separately, trading on the Malaysian rubber market is expected to be bearish this week as the Covid-19 onslaught had investors worried again. ─ Bernama

Malaysian Rubber Glove Manufacturers Association (MARGMA) immediate past president Denis Low said if the emergence of a new cluster in China were to become serious, the government may impose another lockdown.

Chinese authorities have advised citizens not to return to their hometowns for the Chinese New Year festival, he told Bernama.

However, he said prices may remain stable as production is currently affected due to continuous rainfall and an earlier wintering of rubber trees.

“When the movement of people and vehicles is curbed, rubber usage is less, ” he added. — Bernama







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