Gold Futures Likely to Trade in Narrow Range Amid Rising Interest Rates

Kuala Lumpur-based economist Dr Mohd Afzanizam Abdul Rashid expects gold futures on Bursa Malaysia Derivatives to trade within a narrow range next week.

The rising interest rate environment could lend support to the US dollar, weighing on demand for gold, he said.

Afzanizam noted that structural concerns in the bond market may also contribute to increased demand for gold as a safe-haven asset in the medium to long term.

The Bank Muamalat Malaysia Bhd chief economist pointed out that elevated government debt levels across developed economies, including the United States, the United Kingdom, and Japan, have led to rising long-term yields.

Afzanizam forecasts spot gold prices will hover between US$4,300 and US$4,350 per troy ounce next week, due to expectations of a rate hike limiting gold's upside potential.