Gold futures likely to be volatile next week

Trading in gold futures contracts on Bursa Malaysia Derivatives is expected to be volatile next week after the release of
strong US economic data, dealers said.

A dealer said investors are wary that the US Federal Reserve (Fed) might start cutting its monetary stimulus soon.

"The selling pressure in the gold market was not as strong as last June. However, investors have reacted positively to Fed Chair nominee Janet Yellen's comments that she backed the Fed's current bond-buying programme," he said.

On a Friday-to-Friday basis, spot month November 2013 lost RM3.15 to RM129.15 per gramme, while December 2013 eased RM3.00 to RM129.55 per gramme.

For the week just ended, total volume shed to 1,382 lots valued at RM18.12 million, from the 3,386 lots worth RM44.95 million traded previously.

Total open interest increased to 5,760 contracts from 6,774 contracts previously