Kuala Lumpur: The gold futures market on Bursa Malaysia Derivatives is likely to trade in a cautious mode next week ahead of the United States (US) reciprocal tariffs that are expected to be enforced on April 2. SPI Asset Management managing director Stephen Innes said gold is likely to trade with a bullish bias at between US$3,050 per troy ounce and US$3,100 per troy ounce.

According to BERNAMA News Agency, Innes noted that with the impending tariff enforcement, the next move for gold will depend on the aggressiveness of the reciprocal tariffs and the extent of economic damage that the markets start to factor in. Innes suggested that if the situation escalates, the price of US$3,100 per troy ounce could become irrelevant or fail to hold. Even if there is a reduction in tariffs, traders will shift their focus to the secondary effects such as slower global growth and persistent inflation, which could serve as positive influences for gold.

Innes anticipates that any dips toward US$3,050 per troy ounce will attract significant buying interest, as bullion speculators prepare for their next strategic move. He also mentioned that Wall Street is becoming aware of this trend, with major banks now adjusting their gold price targets to the US$3,300 to US$3,500 per troy ounce range for 2025.

On a Friday-to-Friday basis, the spot-month March 2025 contract rose to US$3,070.40 per troy ounce from US$3,034.20 per troy ounce previously, while April 2025 increased to US$3,080.20 per troy ounce from US$3,044.10 per troy ounce. Meanwhile, the May 2025, June 2025, and August 2025 contracts gained to US$3,090.20 per troy ounce from US$3,054.10 per troy ounce last week.

Volume advanced to 226 lots this week from 123 lots last week, while open interest declined to 78 contracts from 87 contracts previously. According to the London Bullion Market Association's afternoon fix on March 27, physical gold was priced at US$3,056.55 per troy ounce.