Gold Futures Set for Narrow Range Next Week Amid Higher Interest Rates

Gold futures on Bursa Malaysia Derivatives are expected to trade within a narrow range next week, according to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid. He noted that expectations of higher interest rates could limit the precious metal's upside potential.

The rising interest rate environment is likely to lend support to the US dollar, weighing on demand for gold, said Dr Mohd Afzanizam. Additionally, there are structural concerns in the bond market, including rising long-term yields and elevated government debt levels, which could increase demand for gold as a safe-haven asset.

The immediate focus will be on the US Federal Reserve's interest rate decision and its latest economic projections. Dr Mohd Afzanizam forecasted that spot gold prices will hover between $4,300 and $4,350 per troy ounce next week due to expectations of a rate hike limiting gold's upside potential.

The September 2026 contract eased to $4,353.50 per troy ounce from $4,477.50, while the October 2026 contract declined to $4,368.70 per troy ounce from $4,491.30. The new November 2026 contract is at $4,384.00 per troy ounce.