KUALA LUMPUR: The gold futures contract on Bursa Malaysia Derivatives is expected to see cautious trading next week as investors await clearer details on United States (US) President Donald Trump's policies.

SPI Asset Management managing director Stephen Innes said that central banks in emerging markets are likely to continue purchasing gold during price dips, with Asian investors also capitalising on lower prices to hedge against trade tensions and potential local currency depreciation.

"Greater clarity on fiscal expansion and trade strategies in the coming months could have a positive impact on gold prices," he said to Bernama.

In the meantime, he said gold is anticipated to move in alignment with the US dollar, acting as a proxy for anticipated US Federal Reserve rate cuts, where weaker economic data would be favourable for gold.

He also projected gold to trade between US$2,670 and US$2,730 per troy ounce.

On a Friday-to-Friday basis, the spot month November 2024 contract ended the week lower at US$2,692.70 per troy ounce from US$2,777.20 per troy ounce last week and December 2024 fell to US$2,705.60 per troy ounce from US$2,777.20 previously.

The January 2025, February 2025 and April 2025 notes also settled lower at US$2,705.60 per troy ounce from US$2,777.20 per troy ounce last week.

Volume jumped to 82 lots from 32 lots last week, while open interest increased to 31 contracts from eight contracts previously.

According to the London Bullion Market Association afternoon fix on Nov 7, the price of physical gold stood at US$2,692 per troy ounce.