Gold futures expected to trade higher next week

KUALA LUMPUR:The gold futures market on Bursa Malaysia Derivatives is expected to trade higher next week over uncertainty in the US stimulus package, said a dealer.

Phillip Futures Sdn Bhd dealer Stephen Lou Yoke Lim said the stimulus package was approved by the US Congress after President Donald Trump slammed the bill as a 'disgrace' in a video posted on his Twitter.

Earlier this week, the US Congress passed a US$900 billion relief bill, which included enhanced unemployment benefits and direct cash payments.

Meanwhile, the local gold market ended the week higher as a weaker US dollar ahead of the Brexit deal and uncertainties over a new variant of coronavirus overshadowed vaccine optimism.

The local market will be closed on Friday for the Christmas holiday.

On a Thursday-to-Friday basis, gold futures on Bursa Malaysia for December 2020 lost 56 ticks to RM247.50 per gramme, January 2021 slipped 294 ticks to RM235.60 per gramme, while February 2021 and March 2021 rose 32 ticks to RM233.60 and RM233.60 per gramme, respectively.

Weekly turnover was four lots worth RM97,250 versus last week's nil, while open interest widened to 25 versus 23 contracts previously.

Meanwhile, the price of physical gold rose RM1.56 to RM237.41 per gramme from RM235.85 per gramme the previous Friday.

-- BERNAMA