Short-term Gold Prices Likely To Hover US$3,800-US$4,200 Per Troy Ounce -- Go Capital
KUALA LUMPUR, July 13 (Bernama) -- Gold prices are likely to hover between US$3,800 and US$4,200 (US$1=RM4.071) per troy ounce amid pressure from crude oil prices and inflation, Go Capital Growth Sdn Bhd general manager Hong Kok Wah said.
In ringgit terms, the general manager of the precious metals trading company said gold prices could range between RM450 and RM520 per gramme.
He said the market has been anticipating a possible interest rate hike in the United States this year to curb inflation amid rising oil prices, which have recently weighed on precious metal prices.
“The US is expected to increase its interest rates this year because of inflation.
“If they raise interest rates, gold prices are likely to remain on lower,” he told reporters at Pos Malaysia Bhd’s Pos ArRahnu Gold-i launch ceremony here today.
Hong said gold prices could move higher next year if the economy underperforms.
“When the US Federal Reserve raises interest rates, it will create a drag on the economy. During that period, economic performance may weaken, hence supporting gold prices,” he said.
Bullion fell as much as 1.4 per cent to near US$4,060 per troy ounce on Monday from Friday’s close, matching the entirety of last week’s decline in percentage terms.
At the time of writing, spot gold dropped 1.11 per cent to US$4,068.20 per troy ounce.
-- BERNAMA