Gold futures likely to swing within narrow range this week

Gold futures on Bursa Malaysia Derivatives are expected to trade within a narrow range of US$4,100 to US$4,300 per troy ounce this week. The price movement will likely be influenced by United States economic data and broader monetary policy expectations, making gold highly sensitive to these factors.

Stephen Innes, managing partner at SPI Asset Management, noted that current options pricing suggests a potential move of about 2.5% on either side of current levels. This indicates a broad trading range around existing prices, reflecting market caution.

Innes also pointed out that Asian demand for gold is likely to remain subdued in the early part of this week. This is due to China's Golden Week holiday, which continues until Oct 7, reducing market activity in the region.