Gold Futures Poised for Continued Gains on Strong Spot Prices
Gold futures on Bursa Malaysia Derivatives are expected to continue their upward trend this week, driven by stronger spot gold prices and the performance of Comex gold. According to Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid, spot gold prices have seen significant gains in recent weeks, reaching a high of US$4,305.69 per troy ounce last week.
This increase is partly attributed to the decline in crude oil prices following reports of the possible reopening of the Strait of Hormuz. The World Gold Council has also reported that demand for gold exchange-traded funds (ETFs) remains strong, with a total of US$3 billion in net inflows recorded in July.
However, Mohd Afzanizam cautioned that uncertainties surrounding interest rate direction in the US could potentially put a cap on gold prices. Despite this, the current market sentiment suggests that gold futures are poised to extend their gains this week.