Gold futures expected to be volatile
Trading in gold futures contract on Bursa Malaysia Derivatives is expected to be volatile next week as the focus shifts to US debt ceiling debate.
Bursa Malaysia Derivatives Bhd chief executive officer Chong Kim Seng said the contract market finished its maiden trading week on an easier note.
"The participation of domestic retail players ranged between 23 per cent and 57 per cent and this is very encouraging for the gold futures contract.
"For us (Bursa Malaysia Derivatives), the contract is designed to bring gold futures trading closer to home to domestic participation, said Chong, adding that, the bourse welcomed more retail participants to consider gold futures as their on-shore gold price movement trading vehicle.
He told Bernama that domestic players stood to gain from leveraging their exposure in gold futures as it would remove foreign currency risks given the fact that the contract was denominated in the ringgit.
For the week just-ended, 2,507 lots, worth RM33.6 million, were traded while open interest on Friday stood at 649 contracts.-- Bernama