Gold futures expected to consolidate

KUALA LUMPUR, Dec 19: The gold futures market on Bursa Malaysia Derivatives is expected to consolidate next week as investor optimism over COVID-19 vaccines and a rapid economic recovery weighs on prices as risk appetite rises, a dealer said, Bernama.com reported.

Axi chief global market strategist Stephen Innes said the current weak US dollar has led gold and silver higher, particularly after the US Federal Reserve preserved its dovish footprint at the Federal Open Market Committee meeting.

"And the market still expects a COVID-19 fiscal stimulus package, which is bullish for bullion," he added.

On a Friday-to-Friday basis, gold futures on Bursa Malaysia for December 2020, January 2021, February 2021, and March 2021 stood at RM (Malaysian ringgit) 262.20 per gramme, RM250.30 per gramme, RM232.0 per gramme, and RM232.0 per gramme, respectively.

Weekly turnover was nil versus last week's one lot worth RM26,220, while open interest remained at 23 contracts.

The gold futures were untraded for five consecutive days for the week just ended.

Meanwhile, the price of physical gold rose RM4.84 to RM235.85 per gramme from RM231.01 per gramme the previous Friday.