Trading of gold futures contracts on Bursa Malaysia Derivatives is likely to oscillate between US$2,640 and US$2,700 per troy oz next week, an analyst said.

According to a report by Bernama, SPI Asset Management managing partner Stephen Innes said the robust safe-haven demand is likely to persist amidst ongoing geopolitical tensions in the Middle East and the persistent Russia-Ukraine conflict.

"From a trade war perspective, gold continues to be in high demand as potential tariffs threaten to disrupt the global economy and unsettle investor sentiment, for which gold serves as a solid hedge.

"This is particularly relevant in Asia, where there is a rising demand for gold as a safeguard against local currency devaluation," he told Bernama.

On a Friday-to-Friday basis, the spot-month January 2025 contract ended the week higher at US$2,667.80 per troy oz compared to US$2,640.40 per troy oz last week, and February 2025 rose to US$2,678.90 per troy oz from US$2,650.50 per troy oz previously.

The March 2025, April 2025 and June 2025 contracts all settled higher at US$2,687.30 per troy oz from US$2,650.50 per troy oz last week.

Volume fell to 41 lots from 60 last week, while open interest widened to 44 contracts from 38 contracts previously.

According to the London Bullion Market Association's afternoon fix on Jan 2, the price of physical gold stood at US$2,646.30 per troy oz.