Gold futures likely to trade higher next week

Kuala Lumpu (Mar 19)   Gold futures contracts on Bursa Malaysia Derivatives will likely trade higher next week on stronger demand as expectations of further US interest rate rises this year have diminished. Gold rates higher on reading of US interest rate movement. — Reuters file picPhillip Futures Sdn Bhd dealer Ler Wee Liang said the US Federal Reserve expects two quarter-point increases in interest rates by year-end, down from four forecast in December last year. “For next week, we expect the Bursa gold futures to go upwards as the expectation of lower basis point increases in the US interest rates can support the gold price,” he told Bernama. On a Friday-to-Friday basis, March 2016 fell 22 ticks to RM166.05 a gramme, April 2016 decreased 33 ticks to RM166.30, May 2016 rose 33 ticks to RM166.50 and June 2016 shed 33 ticks to RM166.75 a gramme. Weekly turnover decreased to 200 lots worth RM2.95 million, from 294 lots worth RM4.89 million last Friday. Open interest on Friday fell to 662 contracts from 804 contracts previously.

Source: Bernama