GOLD FUTURES SET TO TRADE HIGHER NEXT WEEK ON US GOVT SHUTDOWN, FED RATE CUT HOPES

By Engku Shariful Azni Engku Ab Latif

KUALA LUMPUR, Oct 4 (Bernama) -- Gold futures on Bursa Malaysia Derivatives may rise next week due to the United States (US) government shutdown, which could slow growth and prompt an interest rate cut by the Federal Reserve (Fed).

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said gold prices recorded another all-time high during the week to US$3,865.74 per troy ounce, as fears over the US government shutdown have led to higher gold prices.

He said the US government shutdown is likely to accelerate the interest rate cut by the Fed, which could result in a weaker greenback.

"On that note, gold prices could range between US$3,855 and US$3,865 per troy ounce next week," Mohd Afzanizam told Bernama.

On a weekly basis, the October 2025 contract strengthened to US$3,872.8 per troy ounce from US$3,765.40, and the November 2025 contract increased to US$3,891.0 per troy ounce from US$3,783.6 previously.

The February 2026, April 2026 and June 2026 contracts all settled higher at US$3,939.8 per troy ounce compared with US$3,803.5 per troy ounce last week.

The September 2025 contract stood at US$3,750.30 per troy ounce, and the December 2025 contract went up US$3,905.9 per troy ounce from US$3,803.5 last week.

Weekly trading volume reduced to 1,328 lots from 2,310 lots last week, while open interest dropped to 259 contracts from 658 contracts previously.

Physical gold stood at US$3,878.10 per troy ounce based on the London Bullion Market Association’s afternoon fix on Oct 2, 2025.

-- BERNAMA