KUALA LUMPUR: The gold futures contract on Bursa Malaysia Derivatives experienced a decline at the close on Friday as investors opted to book profits in anticipation of the upcoming US Presidential election next week, an analyst has reported.
According to BERNAMA News Agency, SPI Asset Management managing partner Stephen Innes highlighted that gold trading has encountered some turbulence. The recent rally faced a setback due to higher global yields, which triggered a wave of minor profit-taking as the precious metal struggled to surpass the US$2,800 resistance level.
Innes elaborated that while the overbought conditions naturally lead to a pullback, gold is expected to remain supported as the US Presidential election approaches, with steady safe-haven demand. He noted that a significant risk factor is a potential win by Kamala Harris, which could result in a reduction of gold prices as trade wars might be diminished.
The spot month October 2024 contract dropped to US$2,764.90 per troy ounce from Wednesday’
s US$2,784.0 per troy ounce, while the November 2024 contract fell to US$2,777.20 per troy ounce from US$2,798.90 per troy ounce. Furthermore, December 2024, January 2025, and February 2025 contracts also settled lower at US$2,777.20 per troy ounce compared to US$2,807.0 per troy ounce previously.
Trading volume saw a significant decrease, falling to two lots from Wednesday’s 20 lots, and open interest reduced to eight contracts from the previous 27 contracts. Meanwhile, the London Bullion Market Association’s afternoon fix on October 31 reported the price of physical gold at US$2,734.15 per troy ounce.
