Gold Futures Seen Trading Lower Amid Crude Oil Price Tensions

Gold futures on Bursa Malaysia Derivatives are expected to trade lower this week due to their inverse correlation with oil prices. According to Stephen Innes, managing partner of SPI Asset Management, if oil prices move higher, gold is likely to come under pressure. However, he noted that there appears to be structural support around the $4,000 per troy ounce level.

Innes pointed out that this inverse relationship between gold and oil prices is a result of their current market environment. When crude oil prices increase, investors tend to sell their gold holdings, leading to lower prices for the precious metal. Conversely, when oil prices decline, investors view gold as a safe-haven asset, causing its price to rise.

While Innes' prediction suggests that gold futures may trade lower this week, it's essential to note that market conditions can change rapidly. Investors should remain vigilant and adjust their strategies accordingly.