KUALA LUMPUR, March 19 (Bernama) -- The gold futures contract on Bursa Malaysia Derivatives ended higher today, bucking the trend set by COMEX gold.
Phillip Futures Sdn Bhd trader David Lee Kuan Yong said investors continued to hunt for safe haven assets to guard themselves against the global economic fallout from the COVID-19 outbreak after support measures from central banks failed to reassure the markets.
“Based on the latest price action, Bursa gold is likely to trend higher with support seen at RM205 per gramme. Upside resistance is at RM220 and RM225 per gramme,” he said.
The recovery took place after a sharp drop in gold prices yesterday as the spot month was recorded at RM208.00 per gramme, a decline of 216 ticks in a day.
At the close, COMEX gold was traded at US$1,474.40 per ounce (28.45 grammes), a decline of 0.24 per cent from the previous day.
The greenback continued to surge today as investors exited emerging market assets as well as precious metal to hoard for cash, a move seen by analysts as key signs of recession.
COMEX gold decline was in tandem with the strengthening of US dollar, while the increase in gold prices locally was due to the weakening of the ringgit.
At the close, spot month March 2020 and April 2020 both increased 60 ticks to RM211.00 per gramme, May 2020 climbed 42 ticks to RM212.10 per gramme, and June 2020 rose 40 ticks to RM212.20 per gramme.
Volume declined to three lots worth RM63,420 compared with yesterday’s six lots worth RM125,420.
Open interest, meanwhile, slipped to 127 contracts from 133 contracts yesterday.
At 5 pm, the price of physical gold was 47 sen higher to RM203.40 per gramme.
TAGS: Gold futures, Phillip Futures, COMEX, US dollar, Ringgit