AIRLINK 74.64 Decreased By ▼ -0.21 (-0.28%)
BOP 5.01 Increased By ▲ 0.03 (0.6%)
CNERGY 4.51 Increased By ▲ 0.02 (0.45%)
DFML 42.44 Increased By ▲ 2.44 (6.1%)
DGKC 87.02 Increased By ▲ 0.67 (0.78%)
FCCL 21.58 Increased By ▲ 0.22 (1.03%)
FFBL 33.54 Decreased By ▼ -0.31 (-0.92%)
FFL 9.66 Decreased By ▼ -0.06 (-0.62%)
GGL 10.43 Decreased By ▼ -0.02 (-0.19%)
HBL 114.29 Increased By ▲ 1.55 (1.37%)
HUBC 139.94 Increased By ▲ 2.50 (1.82%)
HUMNL 12.25 Increased By ▲ 0.83 (7.27%)
KEL 5.21 Decreased By ▼ -0.07 (-1.33%)
KOSM 4.50 Decreased By ▼ -0.13 (-2.81%)
MLCF 38.09 Increased By ▲ 0.29 (0.77%)
OGDC 139.16 Decreased By ▼ -0.34 (-0.24%)
PAEL 25.87 Increased By ▲ 0.26 (1.02%)
PIAA 22.20 Increased By ▲ 1.52 (7.35%)
PIBTL 6.80 No Change ▼ 0.00 (0%)
PPL 123.58 Increased By ▲ 1.38 (1.13%)
PRL 26.81 Increased By ▲ 0.23 (0.87%)
PTC 14.01 Decreased By ▼ -0.04 (-0.28%)
SEARL 58.53 Decreased By ▼ -0.45 (-0.76%)
SNGP 68.01 Decreased By ▼ -0.94 (-1.36%)
SSGC 10.47 Increased By ▲ 0.17 (1.65%)
TELE 8.39 Increased By ▲ 0.01 (0.12%)
TPLP 11.05 Decreased By ▼ -0.01 (-0.09%)
TRG 63.21 Decreased By ▼ -0.98 (-1.53%)
UNITY 26.59 Increased By ▲ 0.04 (0.15%)
WTL 1.42 Decreased By ▼ -0.03 (-2.07%)
BR100 7,941 Increased By 103.5 (1.32%)
BR30 25,648 Increased By 196 (0.77%)
KSE100 75,983 Increased By 868.6 (1.16%)
KSE30 24,445 Increased By 330.8 (1.37%)
Markets

Gold eases from six-year peak but remains on track for weekly gain

Gold eased on Friday as investors booked profits after prices raced past $1,450 an ounce to hit a six-year peak, but
Published July 19, 2019

Gold eased on Friday as investors booked profits after prices raced past $1,450 an ounce to hit a six-year peak, but Middle East tensions and prospects for lower interest rates kept bullion on track for a second week of gains.

Spot gold shed 0.6% to $1,437.51 by 1151 GMT, having touched its highest since early May 2013 at $1,452.60.

However, US gold futures hung on to gains, advancing by about 0.8% to $1,438.80.

"What we have been seeing over the past couple of hours is a natural bit of profit-taking with gold having made this big move higher. Investors are holding their breath going into the end of the week and the seasonally slow summer period," said Mitsubishi analyst Jonathan Butler.

"But gold is still looking good. The interest rates and dollar environment, uncertainties over the US-China trade war and now the geopolitical situation being the icing on the cake; all of this has created a very supportive environment for gold."

In a speech interpreted as a strong argument in favour of quick monetary action, New York Fed President John Williams on Thursday said that policymakers could not wait for economic disaster to hit before adding stimulus.

The dollar recovered after a sharp fall triggered by the speech, latching on to a subsequent statement from a New York fed representative that Williams' comments were academic and not about immediate policy direction.

Expectations that the US Federal Reserve will cut interest rates by at least 25 basis points (bps) at its policy meeting over July 30-31 have fuelled gold's momentum.

"Now that bullion has broken through $1,440, the figure will be the key for further gains, as targets extend toward $1,500," industrial and trading services group MKS PAMP said in a note.

Investors also took stock of developments in the Middle East, with the United States saying its navy had destroyed an Iranian drone in the Strait of Hormuz. Iran, meanwhile, said all its drones had returned to base safely and there was no sign of major escalation in the Gulf.

Gold is considered a safe investment during times of political or economic uncertainty, with global growth concerns also playing on investors' minds recently.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 1.4% to 814.62 tonnes on Thursday from 803.18 tonnes the previous day.

Among other precious metals, platinum gained 1% to $857.73 while palladium gained 0.2% to $1,528.29. Silver slipped 0.2% to $16.30 and was on track for its best week since July 2016, having gained nearly 7%.

Copyright Reuters, 2019

Comments

Comments are closed.