ANL 23.10 Decreased By ▼ -0.70 (-2.94%)
ASC 16.10 Decreased By ▼ -0.30 (-1.83%)
ASL 22.25 Decreased By ▼ -0.40 (-1.77%)
BOP 8.55 Increased By ▲ 0.17 (2.03%)
BYCO 8.96 Increased By ▲ 0.15 (1.7%)
FCCL 18.07 Decreased By ▼ -0.40 (-2.17%)
FFBL 24.45 Decreased By ▼ -0.15 (-0.61%)
FFL 17.90 Decreased By ▼ -0.15 (-0.83%)
FNEL 8.40 Decreased By ▼ -0.14 (-1.64%)
GGGL 22.09 Decreased By ▼ -0.21 (-0.94%)
GGL 43.18 Decreased By ▼ -0.77 (-1.75%)
HUMNL 7.02 Decreased By ▼ -0.15 (-2.09%)
JSCL 20.85 Decreased By ▼ -0.73 (-3.38%)
KAPCO 37.90 Decreased By ▼ -0.20 (-0.52%)
KEL 3.61 Increased By ▲ 0.01 (0.28%)
MDTL 3.00 Decreased By ▼ -0.07 (-2.28%)
MLCF 36.30 Decreased By ▼ -0.18 (-0.49%)
NETSOL 153.30 Decreased By ▼ -4.45 (-2.82%)
PACE 5.98 Decreased By ▼ -0.03 (-0.5%)
PAEL 31.20 Decreased By ▼ -0.45 (-1.42%)
PIBTL 9.36 Decreased By ▼ -0.11 (-1.16%)
POWER 7.90 Decreased By ▼ -0.14 (-1.74%)
PRL 20.85 Decreased By ▼ -0.13 (-0.62%)
PTC 10.40 Increased By ▲ 0.02 (0.19%)
SILK 1.67 Decreased By ▼ -0.02 (-1.18%)
SNGP 43.19 Decreased By ▼ -0.56 (-1.28%)
TELE 22.06 Decreased By ▼ -0.64 (-2.82%)
TRG 173.50 Decreased By ▼ -2.41 (-1.37%)
UNITY 36.20 Decreased By ▼ -0.77 (-2.08%)
WTL 3.25 Decreased By ▼ -0.08 (-2.4%)
BR100 4,979 Decreased By ▼ -47.44 (-0.94%)
BR30 24,460 Decreased By ▼ -312.8 (-1.26%)
KSE100 46,636 Decreased By ▼ -284.38 (-0.61%)
KSE30 18,480 Decreased By ▼ -177.85 (-0.95%)

Coronavirus
VERY HIGH Source: covid.gov.pk
Pakistan Deaths
27,072
6824hr
Pakistan Cases
1,218,749
2,92824hr
5.08% positivity
Sindh
448,658
Punjab
419,423
Balochistan
32,707
Islamabad
103,720
KPK
170,391
Markets

Gold on track for weekly fall as investors overlook vaccine doubts

  • Spot gold fell 0.1pc to $1,808.90 per ounce by 0751 GMT, down 3.3pc on the week. U.S. gold futures rose 0.1pc to $1,806.80.
27 Nov 2020

Gold eased on Friday en route to a third straight weekly drop as investors weighed doubts over a leading COVID-19 vaccine candidate against optimism that vaccines will arrive sooner than expected.

Spot gold fell 0.1pc to $1,808.90 per ounce by 0751 GMT, down 3.3pc on the week. U.S. gold futures rose 0.1pc to $1,806.80.

Asian shares stalled near record highs as AstraZeneca faced tricky questions about the success rate of its vaccine that could hinder speedy U.S. and EU regulatory approvals.

"For the markets, I don't think that changes the perception that there's going to be a vaccine sooner than previously expected," said IG Markets analyst Kyle Rodda.

Investors are starting to buy into the narrative that the economic recovery is going to gather steam in 2021 and that's driving them to liquidate gold holdings, Rodda added.

Offering some respite to gold, the dollar weakened on improving risk appetite from COVID-19 vaccine optimism and hopes for a smoother transition to a Biden administration.

Gold is trapped in a range of $1,800-$1,820 an ounce, with risks tilted to the downside by a steepening yield curve and the weight of accumulated positioning in gold exchange-traded funds, futures and physical holdings, said Jeffrey Halley, a senior market analyst at OANDA.

But analysts said gold's longer-term trajectory remained positive, with bullion still up about 19pc this year given its lure as a hedge against likely inflation and currency debasement spurred by unprecedented stimulus measures globally.

Gold could reach new highs in 2021 as the U.S. Federal Reserve will likely cap rate rises in the longer end of the yield curve and the dollar will weaken materially, OANDA's Halley added.

Lower interest rates reduce the opportunity cost of holding gold.

Silver fell 0.9pc to $23.23 an ounce.

Platinum fell 0.8pc to $954.53 and palladium gained 0.3pc to $2,390.06.

Comments

Comments are closed.