Kuala Lumpur: Gold futures on Bursa Malaysia Derivatives are expected to trade lower next week, as progress in the trade deal between the United States and China-anticipated by the end of the week-may boost demand for the US dollar and weigh on gold prices.

According to BERNAMA News Agency, SPI Asset Management managing partner Stephen Innes highlighted that gold remains closely linked to its inverse relationship with the dollar. If the US dollar strengthens due to advancements in trade deals-whether with China or other ASEAN economies-gold prices could decline toward US$3,300 per troy ounce.

However, Innes noted that if the dollar weakens amid US-China trade tensions or policy uncertainty, gold could rebound toward US$3,350 per troy ounce, as it resumes its role as a hedge against geopolitical risk.

The US-China trade talks this weekend in Switzerland are expected to be pivotal. A constructive outcome, such as tariff rollbacks or procurement signals, could paradoxically support the dollar, as risk flows favor US assets amid improving clarity. Conversely, if the talks collapse or stall, sentiment could sour quickly, potentially lifting gold and reversing the dollar's late-week bid.

On a Friday-to-Friday basis, the spot month May 2025 contract rose to US$3,335.10 per troy ounce from US$3,274.10 the previous week. Meanwhile, the June 2025, July 2025, August 2025, and October 2025 contracts all improved to US$3,348.10 per troy ounce from US$3,288.10.

Trading volume grew to 455 lots from the 352 lots recorded in the preceding week, while open interest edged up to 42 contracts from 40 contracts. According to the London Bullion Market Association's afternoon fix on May 8, physical gold was priced at US$3,352.30 per troy ounce.