Kuala Lumpur: Gold futures on Bursa Malaysia Derivatives are expected to trade within a range but with an upward inclination in the coming week.
According to BERNAMA News Agency, the precious metal might test the US$3,350 per troy ounce level ahead of key economic releases from the United States, including the central bank meeting minutes and the personal consumption expenditures inflation report. Stephen Innes, managing partner of SPI Asset Management, highlighted that gold's performance will also be supported by a weakening US dollar amidst ongoing concerns over the US fiscal situation.
Innes noted that gold ended the week in a narrow but significant range between US$3,300 and US$3,350 per troy ounce, bolstered by continuous US fiscal concerns and a generally softer dollar. While safe-haven demand remains, outflows from US-based gold exchange-traded funds (ETFs) are limiting rallies, driven by speculation that the tariff narrative has peaked, potentially leading to a tactical pause rather than an escalation in trade tensions.
Despite these challenges, the metal's resilience is noteworthy. The diminishing demand for US Treasuries is starting to impact the dollar, subtly redirecting capital towards gold. Innes emphasized that with no immediate relief in sight for Treasury auctions or fiscal credibility, the macroeconomic environment still favors precious metals.
Looking ahead, Innes mentioned that unless there is a geopolitical shock or policy surprise, gold is likely to remain within its current trading range. He added that a test of US$3,350 per troy ounce is probable, especially if US data falls short of expectations or if Treasury supply continues to exert pressure.
On a Friday-to-Friday basis, the spot month May 2025 contract increased to US$3,336.50 per troy ounce from US$3,218.10 per troy ounce, and the June 2025 contract rose 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 surged to 1,854 lots from the 1,150 lots recorded in the previous week, while open interest climbed to 82 contracts from 49 contracts. According to the London Bullion Market Association's afternoon fix on May 22, physical gold was priced at US$3,284 per troy ounce.