AVN 67.36 Increased By ▲ 0.71 (1.07%)
BOP 9.74 Decreased By ▼ -0.01 (-0.1%)
CHCC 128.00 Decreased By ▼ -1.95 (-1.5%)
DCL 11.13 Decreased By ▼ -0.07 (-0.63%)
DGKC 111.62 Decreased By ▼ -1.23 (-1.09%)
EFERT 61.69 Increased By ▲ 0.94 (1.55%)
EPCL 44.73 Increased By ▲ 0.98 (2.24%)
FCCL 20.90 Decreased By ▼ -0.15 (-0.71%)
FFL 17.53 Increased By ▲ 0.08 (0.46%)
HASCOL 21.18 Increased By ▲ 0.22 (1.05%)
HBL 131.65 Decreased By ▼ -0.11 (-0.08%)
HUBC 81.00 Increased By ▲ 0.78 (0.97%)
HUMNL 8.05 Decreased By ▼ -0.06 (-0.74%)
JSCL 29.26 Decreased By ▼ -1.44 (-4.69%)
KAPCO 26.48 Decreased By ▼ -0.01 (-0.04%)
KEL 4.15 Decreased By ▼ -0.01 (-0.24%)
LOTCHEM 12.55 Increased By ▲ 0.05 (0.4%)
MLCF 39.29 Decreased By ▼ -0.37 (-0.93%)
OGDC 104.87 Increased By ▲ 0.54 (0.52%)
PAEL 36.73 Decreased By ▼ -0.22 (-0.6%)
PIBTL 13.30 Increased By ▲ 0.05 (0.38%)
PIOC 96.89 Decreased By ▼ -1.61 (-1.63%)
POWER 9.43 Increased By ▲ 0.05 (0.53%)
PPL 92.72 Decreased By ▼ -0.38 (-0.41%)
PSO 204.77 Increased By ▲ 3.27 (1.62%)
SNGP 63.87 Increased By ▲ 0.06 (0.09%)
STPL 14.10 Increased By ▲ 0.20 (1.44%)
TRG 54.80 Increased By ▲ 0.20 (0.37%)
UNITY 18.37 Increased By ▲ 0.27 (1.49%)
WTL 1.20 Increased By ▲ 0.01 (0.84%)
BR100 4,342 Decreased By ▼ -4.01 (-0.09%)
BR30 22,087 Increased By ▲ 3.86 (0.02%)
KSE100 41,762 Decreased By ▼ -44.14 (-0.11%)
KSE30 17,632 Decreased By ▼ -26.24 (-0.15%)
COVID-19 TOTAL DAILY
CASES 309,015 798
DEATHS 6,444 7
Markets

Gold rises as investors bet on dovish US Fed stance

  • Spot gold was up 0.4% to $1,963.97 per ounce by 1131 GMT, while US gold futures rose 0.4% to $1,973.50 per ounce.
  • While the Fed does not need to announce stimulus measures now, it will have to lay the groundwork for potential stimulus later.
16 Sep 2020

Gold prices rose on Wednesday, helped by a subdued dollar as investors bet on dovish monetary cues from the U.S Federal Reserve when it announces its policy decision later today.

Spot gold was up 0.4% to $1,963.97 per ounce by 1131 GMT, while US gold futures rose 0.4% to $1,973.50 per ounce.

"What we're probably seeing building in gold here is the expectation that the Fed is going to be more dovish than in the past, and the realization that we're seeing slightly more inflationary pressure than anticipated," said OANDA analyst Craig Erlam.

While the Fed does not need to announce stimulus measures now, it will have to lay the groundwork for potential stimulus later, he added.

Making bullion more attractive for those buying the metal in other currencies, the dollar index fell in the run-up to the Fed decision at 1800 GMT.

The meeting is its first since the central bank took a more relaxed stance on inflation last month. The policy announcement will be followed by a news conference by Chairman Jerome Powell half an hour later.

"Markets will want to see if the Fed will modify its language as some expect, perhaps something to the effect that it will keep rates low for a period of time (say three years) or maybe do the same thing with its inflation language," ED&F Man Capital Markets analyst Edward Meir said in a note.

"But, we doubt the Fed will lock itself into such a fixed language ahead of a potential turn in the US economy."

Lower US interest rates tend to weigh on bond yields and the dollar, bolstering the appeal of non-yielding gold, which is also seen as hedge against inflation and currency debasement.

Elsewhere, silver rose 0.1% to $27.27 per ounce, while platinum fell 0.9%, to $969.83 and palladium slipped 1.2% to $2,381.82 per ounce.