KUALA LUMPUR: The gold futures contract on Bursa Malaysia Derivatives is expected to experience cautious trading next week, following recent gains in the US dollar, an analyst said.

SPI Asset Management managing director Stephen Innes said traders will be closely monitoring market sentiment after the gold price declined this week, in anticipation of slower US Federal Reserve rate cuts, which have supported the strength of the greenback.

"For now, the market is in a state of flux, with next week's price likely to fluctuate between US$2,540 and US$2,585. While the gold market may face some turbulence, it's far from losing its shine," he told Bernama.

For the week just ended, gold futures largely traded lower amid weaker sentiment and subdued demand, mirroring movements in the US COMEX gold market.

On a Friday-to-Friday basis, the spot month November 2024 contract ended the week lower at US$2,572.30 per troy ounce from US$2,692.70 per troy ounce last week.

Meanwhile, December 2024, January 2025, February 2025, and April 2025 notes also settled lower at US$2,585.80 per troy ounce from US$2,705.60 last week.

Volume fell to 45 lots from 82 lots last week, while open interest increased to 36 contracts from 31 contracts previously.

According to the London Bullion Market Association's afternoon fix on Nov 14, the price of physical gold stood at US$2,567.30 per troy ounce.

– BERNAMA