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Gold Futures Fall As Investors Turn To Equities

September 19, 2014

Kuala Lumpur (Sept 19)  Gold futures contracts on Bursa Malaysia Derivatives fell for the fourth day today as investors shifted to the equity market, a dealer said.

 Phillip Futures Sdn Bhd dealer, Ahmad Danial Zainudin, said local investors were looking ahead to return to equity markets after Bank Negara Malaysia and US Federal Reserve decided to retain current financing cost.

 He said the investors also reacted to China's monetary stimulus move to support its economy, dampening interest in gold which typically appealed as safe-haven asset in geopolitical uncertainty or in a down economy.

 "The US dollar rally also weighed on the New York Commodity Exchange (COMEX) gold futures prices," he told Bernama.

 He said adding hurt to gold prices was when SPDR Gold Trust, the largest exchange-traded fund backed by gold, trimmed its assets by four tonnes to 784.22 tonnes, the lowest in three months.

 At the close, September 2014, October 2014, November 2014 and December 2014 declined 10 ticks each to RM127.2, RM127.3, RM127.5 and RM128.15 a gramme, respectively.

 Open interests increased to 3,903 contracts from 3,684 contracts on Thursday.

 Turnover increased to 732 lots worth RM9.36 million from 465 lots worth RM5.94 million yesterday.

 The gold physical price stood at RM123 per gramme, up five sen from Thursday's RM122.95 per gramme.

Source: Bernama

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