KUALA LUMPUR, Nov 14 – Gold futures on Bursa Malaysia Derivatives are expected to decline next week as growing expectations of higher US interest rates continue to strengthen the US dollar.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Federal Reserve’s (Fed) firm approach to monetary policy could put further pressure on gold prices.
He explained that higher interest rates could make US dollar-based investments more attractive to investors. As a result, demand for gold may weaken.
Gold prices often face pressure when the US dollar strengthens because the precious metal becomes more expensive for buyers using other currencies.
Mohd Afzanizam expects gold prices to trade between US$3,800 and US$3,900 per troy ounce next week.
Meanwhile, Bursa Malaysia’s gold futures contracts recorded declines across several trading months.
The November 2026 contract fell to US$3,900.60 per troy ounce from US$4,087.60 previously.
The December 2026 contract also dropped to US$3,915.90 from US$4,103.20.
Similarly, the January 2027 contract declined to US$3,917 from US$4,104.30.
Other contracts, including February, April and June 2027, also recorded lower prices at US$3,944.90 per troy ounce.
Trading activity weakened during the week as well. Total trading volume fell to 384 lots from 591 lots recorded the previous week.
Open interest also decreased to 169 contracts from 177 contracts.
In the international market, physical gold was fixed at US$3,870.20 per troy ounce during the London Bullion Market Association’s afternoon fixing on Nov 12.
The latest outlook suggests that gold prices may remain under pressure as investors continue to monitor US interest rate decisions and movements in the dollar.
Source : BERNAMA | Rewritten By Minutesmy
