AIRLINK 69.20 Decreased By ▼ -3.86 (-5.28%)
BOP 4.90 Decreased By ▼ -0.19 (-3.73%)
CNERGY 4.26 Decreased By ▼ -0.11 (-2.52%)
DFML 31.25 Decreased By ▼ -1.20 (-3.7%)
DGKC 77.25 Increased By ▲ 1.76 (2.33%)
FCCL 20.00 Increased By ▲ 0.48 (2.46%)
FFBL 35.00 Decreased By ▼ -1.15 (-3.18%)
FFL 9.12 Decreased By ▼ -0.10 (-1.08%)
GGL 9.80 Decreased By ▼ -0.05 (-0.51%)
HBL 112.76 Decreased By ▼ -3.94 (-3.38%)
HUBC 133.04 Increased By ▲ 0.35 (0.26%)
HUMNL 6.95 Decreased By ▼ -0.15 (-2.11%)
KEL 4.23 Decreased By ▼ -0.18 (-4.08%)
KOSM 4.25 Decreased By ▼ -0.15 (-3.41%)
MLCF 36.60 Increased By ▲ 0.40 (1.1%)
OGDC 132.87 Decreased By ▼ -0.63 (-0.47%)
PAEL 22.64 Increased By ▲ 0.04 (0.18%)
PIAA 24.20 Decreased By ▼ -1.81 (-6.96%)
PIBTL 6.46 Decreased By ▼ -0.09 (-1.37%)
PPL 116.30 Increased By ▲ 0.99 (0.86%)
PRL 25.90 Decreased By ▼ -0.73 (-2.74%)
PTC 13.08 Decreased By ▼ -1.02 (-7.23%)
SEARL 52.00 Decreased By ▼ -1.45 (-2.71%)
SNGP 67.60 Increased By ▲ 0.35 (0.52%)
SSGC 10.54 Decreased By ▼ -0.16 (-1.5%)
TELE 8.28 Decreased By ▼ -0.14 (-1.66%)
TPLP 10.80 Increased By ▲ 0.05 (0.47%)
TRG 59.29 Decreased By ▼ -4.58 (-7.17%)
UNITY 25.13 Increased By ▲ 0.01 (0.04%)
WTL 1.27 No Change ▼ 0.00 (0%)
BR100 7,409 Decreased By -52.4 (-0.7%)
BR30 24,036 Decreased By -134.9 (-0.56%)
KSE100 70,667 Decreased By -435.6 (-0.61%)
KSE30 23,224 Decreased By -170.8 (-0.73%)

Gold prices edged higher on Tuesday as a dip in the dollar made US currency-priced bullion less expensive for overseas buyers, although trading was thin after the long Christmas weekend. Spot gold was up 0.4% at $1,804.71 per ounce as of 0327 GMT.

US gold futures rose 0.5% to $1,812.50.

The dollar index slipped 0.2%.

The dollar eased while risk sentiment found support amid China’s relaxation of quarantine rules, which is currently helping gold prices, said OCBC FX strategist Christopher Wong.

Top gold consumer China will stop requiring inbound travellers to go into quarantine starting from Jan. 8, the National Health Commission said in a major step towards easing curbs on its borders, which have been largely shut since 2020.

Gold has risen nearly $200 since falling to a more than two-year low in late September as expectations about slower rate rises from the US Federal Reserve dimmed the dollar’s allure.

The Fed lowered its pace of rate hikes gradually to 50 bps in December after four consecutive hikes of 75 bps each.

However, Fed Chair Jerome Powell has signalled the US central bank will deliver more rate hikes next year.

“Gold was weaker for most of 2022 amid aggressive tightening of monetary policies, rising real yields and dollar strength. But the tide has turned as Fed shifts into policy calibration mode,” added Wong.

Spot gold may test support at $1,775

“Sustained recovery in gold prices is possible if Fed pivots.”

Higher rates diminish gold’s anti-inflationary appeal and increase the opportunity cost of holding the asset since it pays no interest.

Meanwhile, data on Friday showed US consumer spending barely rose in November, while inflation cooled further.

Spot silver gained 0.8% to $23.90, platinum was up 0.2% to $1,023.47 and palladium rose 0.3% to $1,768.55.

Profits at China’s industrial firms contracted further in the January-November period, when strict COVID 19-related restrictions disrupted factory activity and supply chains.

Comments

Comments are closed.