Gold Futures Likely To Trade Range-bound With Upward Bias Next Week
By Durratul Ain Ahmad Fuad
KUALA LUMPUR, May 24 (Bernama) -- Gold futures on Bursa Malaysia Derivatives are likely to trade range-bound with an upward bias next week.
The precious metal could potentially test the US$3,350 per troy ounce level ahead of the release of the United States (US) central bank meeting minutes and the US personal consumption expenditures inflation report, said SPI Asset Management managing partner Stephen Innes.
He said its performance will also be supported by a softening US dollar amid continued concerns over the US fiscal position.
“Gold ended the week locked in a tight but telling range of between US$3,300 per troy ounce and US$3,350 per troy ounce, clinging to support from ongoing US fiscal concerns and a broadly softer dollar.
“While safe-haven demand remains intact, outflows from US-based gold exchange-traded funds (ETFs) continue to cap rallies -- fuelled by speculation that the tariff narrative has peaked, and that we may be heading into a tactical pause rather than an escalation in trade war.
“Despite that drag, the metal’s resilience speaks volumes. The lack of demand for US Treasuries is starting to bite, pressuring the dollar and quietly nudging capital back into gold,” he told Bernama.
He added that with no near-term relief in sight for Treasury auctions or fiscal credibility, the macro backdrop still favours precious metals.
Looking ahead, he said, barring a geopolitical shock or policy surprise, gold is likely to remain within its current trading range.
“A test of US$3,350 per troy ounce is very much in play, especially if US data underwhelms or Treasury supply continues to weigh,” he said.
On a Friday-to-Friday basis, the spot month May 2025 contract increased to US$3,336.50 per troy ounce from US$3,218.10 per troy ounce, and the June 2025 contract went up to US$3,349.70 per troy ounce from US$3,232.0 per troy ounce.
The July 2025, August 2025, and October 2025 contracts all improved to US$3,363.40 per troy ounce from US$3,245.70 per troy ounce.
Trading volume bounced to 1,854 lots from the 1,150 lots recorded in the preceding week, while open interest rose to 82 contracts from 49 contracts.
According to the London Bullion Market Association’s afternoon fix on May 22, physical gold was priced at US$3,284 per troy ounce.
-- BERNAMA