KUALA LUMPUR: Gold futures contracts on Bursa Malaysia Derivatives are expected to trade on downside bias this week, tracking the performance of the United States Comex gold futures.

       SPI Asset Management managing director Stephen Innes said with the US Treasury yields expected to continue to fall as inflation ebbs and the Federal Reserve (Fed) widely expected to hike interest rates by another 25 basis points this week, gold could remain supported at US$1,950 (RM8,892) per troy ounce.

       “But with recession concerns easing as US economic data continues to hold up, gold may struggle to break significantly above US$1,975 (RM9,006).

       “Hence we expect gold futures to move between US$1,950 (RM8,892) and US$1,975 (RM9,006) per troy ounce,” he told Bernama.

       For the week just ended, Comex gold has shown its resilience as a safe haven asset with a third consecutive weekly gain mainly supported by the anticipation that the Fed would implement its final rate increase in the current tightening cycle.

       Lower interest rates made holding zero-yielding bullion more attractive for investors.

       Bursa Malaysia gold futures traded higher compared with the previous week.

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       On a weekly basis, the spot month of July 2023 rose to US$1,965.30 (RM8,962) per troy ounce from US$1,960.50 (RM8,940) per troy ounce, while August 2023 climbed to US$1,973.30 (RM8,998) per troy ounce from US$1,968.30 (RM8,975) per troy ounce previously.