KUALA LUMPUR, March 6: The gold futures market on Bursa Malaysia Derivatives is expected to trend lower next week, as the US Dollar Index is expected to keep on rising, hovering near three-month highs.
Phillip Futures Sdn Bhd dealer Muhammad Fawwaz Zakaria said the US dollar and Comex gold have an inverse correlation, thus, as the greenback is expected to strengthen further, it would affect gold’s performance.
“I will put support for next week’s price for Comex gold at US$1,650 for the April contract. If it were to break the support, gold would drop further,” he told Bernama.
On a Friday-to-Friday basis, gold futures on Bursa Derivatives for March 2021, April 2021 and May 2021 all remained at RM232.00 a gramme, while June 2021 stood at RM224.0 a gramme.
Weekly turnover was nil compared with one lot last week, while open interest stood at 10 contracts from 13 contracts previously.
Meanwhile, the price of physical gold dropped RM7.77 to RM214.58 a gramme on Friday from RM222.35 a gramme last Friday.- Bernama