Gold Futures To Soften Next Week

KUALA LUMPUR, April 9 (Bernama) -- Gold futures contract on Bursa Malaysia Derivatives is expected to soften next week and trading is expectd to be rangebound. It is likely to trade between US$38.36 (RM150.00) and US$40.40 (RM158.00) a gramme, said Phillip Futures Sdn Bhd Dealer Ler Wee Liang. The Bursa gold futures market would also track the performance of the New York Commodity Exchange's (COMEX) gold market, the price setter for the precious metal. "Demands for COMEX gold futures is expected to slow down in line with investors' belief that the US economy is still on track to warrant further interest rate hikes by the Federal Reserve," he told Bernama. Ler also said the metal was sensitive to moves in US interest rates as a rise would lift the opportunity cost of holding non-yielding assets like bullion. "The upside strength in gold is weakening as the world economy was improving. However, in the short term, the price may remain elevated due to investor uncertainty. On a Friday-to-Friday basis, April 2016 gained 19 ticks to RM155 a gramme, May 2016 added 17 ticks to RM155.15 a gramme while June 2016 and July 2016 rose 24 ticks each to RM155.3 and RM155.85 a gramme, respectively. Weekly turnover reduced to 99 lots, valued at RM1.46 million, from 186 lots, worth RM2.9 million, recorded last week. Open interest on Friday narrowed to 553 contracts from 581 contracts previously. (US$1 = RM3.91) -- BERNAMA