Commodities
Gold Futures Tumble Ahead as Crude Oil Prices Rise
The Kuala Lumpur Stock Exchange (KLSE) Screener suggests that gold futures on Bursa Malaysia Derivatives are likely to trade lower this week.
This prediction is attributed to tensions in West Asia, which could cause a rise in crude oil prices. According to Stephen Innes, managing partner of SPI Asset Management, gold remains inversely correlated with oil prices in the current environment.
In other words, if oil prices increase, gold is likely to come under pressure, while a decrease in crude should support gold. However, there appears to be structural support around the US$4,000 per troy ounce level.