KUALA LUMPUR: The gold futures contract on Bursa Malaysia Derivatives is expected to trade in a consolidation mode after hitting record highs of over RM220 per gramme at the close last Friday (Feb 21).
Phillip Futures Sdn Bhd trader Stephen Lou Yoke Lim said the all-time high performance would likely prompt some profit-taking, affecting the price of the precious metal next week.
“The number of new cases of Covid-19 is also a key to guide the market trend moving forward,” he told Bernama.
For the week just ended, the gold futures were mostly untraded as investors stayed on the sidelines awaiting the economic stimulus package to be announced on Thursday next week.
However, the precious metal surged to a record high on Friday as concerns over the spread of Covid-19 beyond China had spurred a rush for safe-haven buy.
The local gold futures were also tracking the US Commodity Exchange’s (Comex) gold futures market which hit a seven-year high on Thursday.
On a Friday-to-Friday basis for the week just ended, spot month February 2020 and March 2020 surged 266 ticks each to RM222 per gramme, while April 2020 increased 258 ticks to RM223 and May 2020 was 257 ticks higher at RM223 per gramme.
Weekly turnover narrowed to five lots worth RM110,760 from eight lots worth RM167,180 last week, while open interest widened to 139 contracts from 137 contracts previously. – Feb 22, 2020, Bernama
