GOLD FUTURES LIKELY TO BE CAUTIOUS DUE TO US PRESIDENTIAL ELECTION

By Siti Radziah Hamzah

KUALA LUMPUR, Nov 2 (Bernama) -- Gold futures contract on Bursa Malaysia Derivatives is likely to be on cautious trading mode as investors are expected to adopt a wait-and-see stance prior to the US presidential election on Nov 5, said dealers. 

However, SPI Asset Management managing director Stephen Innes said either outcome could be bullish, although a Kamala Harris win might trigger an initial knee-jerk dip.

He said under Harris’ administration, the market would almost certainly see an expanded deficit and a weakened US dollar over time, which would support a long-term rally in gold.

“With Harris in the White House, geopolitical risk could actually heighten given her perceived softer stance on the global stage — a factor that only adds to gold’s allure as a safe haven,” Innes told Bernama.

The gold market was traded mostly higher during the week just ended as investors turned to safe haven assets such as gold following market volatility ahead of the US presidential election. 

The market was closed on Thursday for the Deepavali public holiday. 

On a Friday-to-Friday basis, the spot month October 2024 contract ended the week higher at US$2,764.90 per troy ounce from US$2,720.90 per troy ounce last week and November 2024 rose to US$2,777.20 per troy ounce from US$2,737.20 previously.

The December 2024, January 2025 and February 2025 notes also settled higher at US$2,777.20 per troy ounce from US$2,745.30 per troy ounce last week.

Volume fell sharply to 32 lots from 173 lots last week while open interest narrowed to eight contracts from 21 contracts previously.

According to the London Bullion Market Association’s afternoon fix on Oct 31, the price of physical gold stood at US$2,734.15 per troy ounce.

-- BERNAMA