Gold futures expected to be uncertain
Trading in gold futures contract on Bursa Malaysia Derivatives is expected to be uncertain next week as investors seek fresh impetus.
Bursa Malaysia Derivatives Bhd chief executive officer Chong Kim Seng said investors were likely to adopt a "wait-and-see" attitude next week, monitoring the developments in the United States amid speculation the Federal Reserve would hold-off tapering for a longer period.
He said the local market appeared to be settling down to sort out the impact of the US government shutdown.
"The market is still trying to gain footing where it is going to be in the long-term given the uncertainty and the lack of data release from the Federal Reserve over the last couple of weeks," he told Bernama.
Chong said the market began the week on the low side due to uncertainty over the US debt ceiling deadlock and the shutdown of the US government.
"It was not until late Wednesday when it was announced there was a final settlement reached between the White House and GOP (Grand Old Party)/Speaker on the extension of US debt ceiling timeline," he added.
Prices in London appreciated as a result and local gold futures contract followed as well in the afternoon.
The week finished closed to its week high, said Chong, adding that gold futures contract traded at about RM22.6 million in total value for the four trading days this week.
On a Friday-Friday basis, spot month October 2013 gained RM2.45 to RM134.25 per gramme while December 2013 rose RM2.60 to RM135.00 per gramme.
For the week just-ended, total volume eased to 2,001 lots from 2,507 lots traded last Friday while open interest slipped to 2,990 contracts from 3,120 contracts previously.-- Bernama