KUALA LUMPUR: Gold futures contract on Bursa Malaysia Derivatives is likely to see an upward momentum next week as concerns over the 2019 novel coronavirus outbreak continues to keep global markets on the edge.
A dealer said the spread of coronavirus still shows no signs of abating as the World Health Organisation (WHO) declared the outbreak a global health emergency after the virus claimed more than 200 lives,
“The World Bank, as well as many other financial and research houses, had forecast that global economy is expected to slow down, especially in the first half of this year, with tourism and manufacturing sectors being affected the most (by the outbreak).
“This concerns had triggered investors to move to safe-haven assets such as gold for now,” he told Bernama.
Meanwhile, RHB Bank, in its technical analysis, said the upward momentum of COMEX gold is expected to continue its bull run, as the positive session continues to reinforce its bias that the commodity has reached its retracement target at US$1,542.80.
“While we note that the relative strength index reading is again back to the overbought region, there are no adverse price signals that could indicate a potential price reversal. Premised on this, we are keeping to our positive trading bias,” it said.
The local gold derivative moves in line with COMEX gold movement.
On a Friday-to-Friday basis for the week just ended, spot month January 2020 rose 87 ticks to RM208.05 per gramme, while February 2020, March 2020 and April 2020, all increased 70 ticks to RM207.20, RM207.30 and RM208.20 a gramme, respectively.
Weekly turnover increased to four lots worth RM82,415 from last weeks two lots worth RM40,790, while open interest increased one lot to 136 contracts from 135 contracts last week. – Feb 01, 20202, Bernama
