KUALA LUMPUR: Gold futures on Bursa Malaysia Derivatives are expected to remain well-supported, driven by uncertainty surrounding the policies of US President-elect Donald Trump.
SPI Asset Management managing partner Stephen Innes noted that markets are anticipating the inflationary impact of these policies, adding to existing inflationary pressures.
“I anticipate gold will find buyers on dips to US$2,685, with resistance likely to be around US$2,735 this week. However, the greater risk seems tilted toward the upside, as geopolitical and economic uncertainties could drive further safe-haven demand,” Innes told Bernama.
On a Friday-to-Friday basis, the spot-month January 2025 contract closed higher at US$2,702.70 per troy ounce, up from US$2,692.70 per troy ounce the previous week.
Meanwhile, the February 2025 contract rose to US$2,711.20 per troy ounce from US$2,703.10 per troy ounce. The March, April, and June 2025 contracts all settled higher at US$2,719.30 per troy ounce from US$2,707.30 per troy ounce last week.
Volume eased to 40 lots from 83 lots the previous week, while open interest widened to 78 contracts from 56 contracts.
According to the London Bullion Market Association’s afternoon fix on Jan 16, the physical gold price stood at US$2,716.50 per troy ounce.
The rubber market is likely to see a slight uptick this week, driven by steady demand ahead of the Chinese New Year (CNY) celebration, said industry expert Denis Low.
He highlighted that the Thai Meteorological Department warned of a strengthening northeast monsoon, bringing heavy rainfall to the lower South of Thailand.
“This may cause flash floods and incessant downpours. This incessant rainfall would contribute to an inadequate supply situation and may push up prices and demand,” Low told Bernama.
Volatile oil prices and the US dollar are also expected to impact prices and demand.
“Hence, we may see a more measured approach to trading of this commodity,” he said.
The Malaysian Rubber Glove Manufacturers Association (Margma) noted that the rubber market may see volatility this week amid brewing trade tensions between the US and China, with potential threats of a new trade war.
“Prices would continue to track the performance of regional rubber futures markets, the strength of the ringgit against the US dollar coupled with benchmark crude oil prices. The continued uncertain weather conditions in major rubber-producing countries will also continue to affect the ongoing rubber supply concerns,” said the association.
On a Friday-to-Friday basis, the Kuala Lumpur rubber market traded mixed, with the Malaysian Rubber Board’s reference price for Standard Malaysian Rubber 20 (SMR 20) rising 18.0 sen to 894.0 sen per kilogramme (kg), while latex in bulk decreased by 6.0 sen to 670.50 sen per kg.
The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to see profit-taking as traders pare
their positions ahead of the Chinese New Year celebrations, according to Interband Group of Companies’ senior palm oil trader, Jim Teh.
“However, losses are likely to be limited by buying support from India, Pakistan, the Middle East, the European Union, and the United States. This week is expected to be a quiet trading period for the CPO futures market, with prices likely to range between RM4,100 and RM4,200 per tonne,” he told Bernama.
Meanwhile, palm oil trader David Ng forecasted that the CPO market would trade within a range of RM4,100 to RM4,350 per tonne, maintaining a slight upward bias due to strong market fundamentals.
On a Friday-to-Friday basis, the spot-month February 2025 contract declined by RM110 to RM4,441 per tonne, while the March 2025 contract fell by RM111 to RM4,280 per tonne, and the April 2025 contract eased by RM95 to RM4,190 per tonne.
The May 2025 contract dropped RM87 to RM4,122 per tonne, the June 2025 contract slipped RM79 to RM4,167 per tonne, and the July 2025 contract remained unchanged at RM4,070 per tonne.
Weekly trading volume rose to 445,885 lots from 444,410 lots in the previous week, while open interest decreased to 223,575 contracts on Friday, compared to 229,080 contracts a week earlier.
The physical CPO price for January South fell by RM110 to RM4,650 per tonne. – BERNAMA
