Gold Futures To Trade In Consolidation Mode Next Week

KUALA LUMPUR, Gold futures contract on Bursa Malaysia Derivatives (BMD) is likely to trade in consolidation mode next week, ahead of the United States (US) Federal Open Market Committee's meeting on Sept 17-18. SPI Asset Management managing director Stephen Innes said that gold prices surged on Friday, driven by hopes of a larger-than-expected rate cut by the US Federal Reserve (Fed), with markets having already priced in an aggressive easing cycle. 'The real question is not whether the cut will happen, but whether it will be 50 basis points (bps). 'However, even if the cut is only 25 bps, thus falling short of dovish expectations, gold should remain supported on dips,' he told Bernama. This is because the market would quickly shift its focus to the strong possibility of a 50 bps cut in November, said Innes. 'In short, gold's bullish trend appears solid, with any pullbacks likely seen as buying opportunities. 'For next week, gold could move in a wider range, especially if the Fed delivers a 50 bps cut. In that case, gold could trade as high as US$2,600, hovering between US$2,550 and US$2,600,' he added. On a Friday-to-Friday basis, spot month September 2024 rose to US$2,575.00 per troy ounce from US$2,539.00 per troy ounce last week. Meanwhile, October 2024, November 2024, December 2024, February 2025 and April 2025 all settled higher at US$2,587.30 from US$2,539.00 per troy ounce previously. Volume improved to 85 lots from 56 lots last week, while open interest widened to 74 contracts from 49 contracts previously. The price of physical gold stood at US$2,545.95 per troy ounce, according to the London Bullion Market Association's afternoon fix on Sept 12. Bursa Malaysia Bhd and its subsidiaries will be closed on Monday, Sept 16, 2024, in observance of both Prophet Muhammad's birthday and the Malaysia Day public holiday. The exchange said that operations, including trading and settlement activities, would resume the following day. Source: BERNAMA News Agency