Gold Futures May See Profit-Taking Ahead of US Inflation Data

Kuala Lumpur-based Quintex Intel global strategist Stephen Innes says gold futures on Bursa Malaysia Derivatives may see profit-taking next week ahead of US inflation data release.

Innes expects gold prices to trade in the $4,450 to $4,500 range and notes that strong central bank buying and Asian retail demand continue to provide support for gold.

He warns that higher-than-expected inflation readings could revive expectations for a Federal Reserve rate hike and put pressure on gold. Innes says gold has been resilient in pullbacks due to these underlying factors.