Saturday, May 22, 2021

Bursa gold futures likely to stay quiet next week, gold to advance

During the week just ended, local gold futures were untraded due to subdued demand for the precious metal. ― AFP pic
During the week just ended, local gold futures were untraded due to subdued demand for the precious metal. ― AFP pic

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KUALA LUMPUR, May 22 — The gold futures market on Bursa Malaysia Derivatives is expected to stay quiet next week due to lack of buying support, said a dealer.

Phillip Futures Sdn Bhd dealer Carmen Yoon Kar Min said the physical gold price is expected to trade range-bound as sentiments remained cautious over a possible full lockdown in the country in the effort to curb the Covid-19 pandemic.

Malaysia’s daily newly confirmed Covid-19 cases dropped to 6,493 on Friday from a record high of 6,806 on Thursday.

Technically, Oanda senior market analyst Jeffrey Halley said, gold looks poised to test the resistance at US$1,890.00 (US$1 = RM4.13) an ounce (one ounce = 28.34 gram) and to be followed by US$1,900.00 an ounce.

“A move through US$1,900.00 is likely to spur option-related and algorithmic buying, pushing it to US$1,920.00 an ounce.

“Support lies at US$1,965.00 and US$1,953.00 an ounce. Only a failure of the significant support level and 200-day moving average at US$1,845.00 an ounce suggests the rally is over for now,” he said.

During the week just ended, local gold futures were untraded due to subdued demand for the precious metal.

On a last Wednesday-to-Friday basis, Bursa Malaysia’s gold futures contract for May 2021 stood at RM233.0 a gram, June 2021 remained at RM225.0 a gram, July 2021 was pegged at RM230.0 a gram and August 2021 stood at RM235.0 a gram.

Volume remained nil while open interest stood at eight contracts.

Meanwhile, the price of physical gold rose RM6.66 to RM241.53 a gram from last Friday’s RM234.87 a gram.

The market was closed last Thursday and Friday for the Hari Raya celebration. — Bernama




Source: Malay Mail

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