Gold Futures Likely To Trade Within Narrow Range Next Week

By Abdul Hamid A Rahman

KUALA LUMPUR, Sept 12 (Bernama) -- Gold futures on Bursa Malaysia Derivatives are expected to trade within a narrow range next week, with expectations of higher interest rates likely to limit the precious metal’s upside potential.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the rising interest rate environment could lend support to the US dollar, weighing on demand for gold.

“Aside from interest rates, there are structural concerns in the bond market. Rising long-term yields amid elevated government debt levels could increase demand for gold as a safe-haven asset in the medium to long term.

“The increase in long-term bond yields across developed economies has occurred at a time when government debt levels in major economies, including the United States, the United Kingdom and Japan, remain elevated,” he told Bernama.

In the immediate term, Mohd Afzanizam said market attention will be focused on the US Federal Reserve’s (Fed) interest rate decision, as well as its latest economic projections for gross domestic product (GDP), inflation, unemployment and the federal funds rate.

“We foresee spot gold prices hovering between US$4,300 and US$4,350 per troy ounce next week, as expectations of a rate hike are likely to limit the upside potential for gold prices,” he said.

On a week-on-week basis, the September 2026 contract eased to US$4,353.50 per troy ounce from US$4,477.50, the October 2026 contract declined to US$4,368.70 per troy ounce from US$4,491.30, and the new November 2026 contract is at US$4,384.00 per troy ounce.

Meanwhile, the December 2026, February 2027 and  April 2027 contracts all fell to US$4,391.80 per troy ounce from US$4,517.50 previously.

Weekly trading volume slid to 413 lots from 881 lots a week ago, while open interest increased to 469 contracts from 357 contracts.

Physical gold was fixed at US$4,365.45 per troy ounce at the London Bullion Market Association’s afternoon fix on Sept 10, 2026.

-- BERNAMA