KUALA LUMPUR, Dec 18 — Gold futures contracts on Bursa Malaysia Derivatives rebounded to close higher today tracking gains on US Commodity Exchange’s gold futures as the Federal Reserve (Fed) took it easy on plan rate increase.
Phillip Futures Sdn Bhd dealer, Lim Eng Wee, said following Fed’s statement, the greenback fell against a basket of currencies. “Besides that, the prices were also supported by signs of increased physical demand,” he told Bernama. However, Lim said, traders believed the gains in gold would be limited as expectation remained that rates would rise next year.
“Economists believe the Fed will increase interest rates by next June,” he said. At the close, December 2014, January 2015, February 2015 and March 2015 edged up nine ticks each to RM134.95, RM135.40, RM135.70 and RM136.10 a gramme respectively.
Open interest eased to 1,746 contracts from 1,817 contracts yesterday, while turnover declined to 57 lots valued at RM700,000 from 109 lots worth RM1.47 million yesterday. The physical price of gold at 5pm was 91 sen lower at RM129.05 per gramme from RM129.96 per gramme yesterday. — Bernama
