KUALA LUMPUR: Gold futures contracts on Bursa Malaysia Derivatives are likely to remain bearish next week on lower demand.
Phillip Futures Sdn Bhd dealer Lim Eng Wee said demand has shifted to riskier assets following strong third quarter US economic data and the move by the Bank of Japan to expand its stimulus programme.
"We expect gold to remain under pressure next week on lower demand due to the strengthening of the US dollar and global stock markets.
"The strong US gross domestic product data on Thursday had dulled gold's appeal as a hedge against risk," he told Bernama.
The US economy expanded by 3.5 per cent in the third quarter of 2014, contributed by increased military spending and a drop in imports.
Back home, the local gold market experienced a downtrend throughout the week.
On a Friday-to-Friday basis, October 2014 slipped 116 ticks to RM124.10 a gramme and November 2014 lost 109 ticks to RM124.80 a gramme.
December 2014 shed 105 ticks to RM125.20 a gramme and January 2015 eased 103 ticks to RM125.50 a gramme.
Total volume increased to 681 lots worth RM8.62 million from 456 lots worth RM5.96 million transacted last week.
Open interest on Friday rose to 2,953 contracts from 2,699 contracts previously.-- Bernama