GOLD FUTURES TO TRADE IN CAUTIOUS MODE NEXT WEEK AHEAD OF US TARIFFS

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, March 29 (Bernama) -- The gold futures market on Bursa Malaysia Derivatives is likely to trade in a cautious mode next week ahead of the United States (US) reciprocal tariffs that are expected to be enforced on April 2.

SPI Asset Management managing director Stephen Innes said gold is likely to trade with a bullish bias at between US$3,050 per troy ounce and US$3,100 per troy ounce. 

“With tariff enforcement on April 2, gold’s next move will hinge on how aggressive those reciprocal tariffs are and how much economic damage markets begin to price in.

“If things escalate, US$3,100 per troy ounce could become irrelevant or no longer hold up. Even if tariffs are dialled back, traders will pivot to the second-order effects -- namely, slower global growth and sticky inflation -- both bullish tailwinds for gold,” he told Bernama. 

He expects dips toward US$3,050 per troy ounce to find strong buying interest as bullion speculators are preparing for their next opportunity to make a move.

“Wall Street is catching on too, with big banks now pushing their gold targets up to the US$3,300 to US$3,500 per troy ounce range for 2025,” he added.

On a Friday-to-Friday basis, the spot-month March 2025 contract rose to US$3,070.40 per troy ounce from US$3,034.20 per troy ounce previously, while April 2025 increased to US$3,080.20 per troy ounce from US$3,044.10 per troy ounce.

Meanwhile, the May 2025, June 2025 and August 2025 contracts gained to US$3,090.20 per troy ounce from US$3,054.10 per troy ounce last week. 

Volume advanced to 226 lots this week from 123 lots last week, while open interest declined to 78 contracts from 87 contracts previously. 

According to the London Bullion Market Association’s afternoon fix on March 27, physical gold was priced at US$3,056.55 per troy ounce.

-- BERNAMA