ANL 19.29 Decreased By ▼ -1.56 (-7.48%)
ASC 13.45 Decreased By ▼ -0.09 (-0.66%)
ASL 22.20 Decreased By ▼ -0.80 (-3.48%)
BOP 8.18 Decreased By ▼ -0.02 (-0.24%)
BYCO 7.55 Decreased By ▼ -0.26 (-3.33%)
FCCL 17.45 Decreased By ▼ -0.35 (-1.97%)
FFBL 22.10 Decreased By ▼ -0.65 (-2.86%)
FFL 15.20 Decreased By ▼ -0.30 (-1.94%)
FNEL 7.40 Increased By ▲ 0.05 (0.68%)
GGGL 17.00 Decreased By ▼ -0.83 (-4.66%)
GGL 39.30 Decreased By ▼ -0.71 (-1.77%)
HUMNL 5.76 Decreased By ▼ -0.26 (-4.32%)
JSCL 18.00 Decreased By ▼ -0.30 (-1.64%)
KAPCO 35.95 Decreased By ▼ -0.40 (-1.1%)
KEL 3.29 Decreased By ▼ -0.11 (-3.24%)
MDTL 2.50 Decreased By ▼ -0.15 (-5.66%)
MLCF 34.24 Decreased By ▼ -0.86 (-2.45%)
NETSOL 119.85 Decreased By ▼ -9.55 (-7.38%)
PACE 4.94 Increased By ▲ 0.19 (4%)
PAEL 26.53 Decreased By ▼ -0.47 (-1.74%)
PIBTL 8.71 Decreased By ▼ -0.14 (-1.58%)
POWER 7.25 Decreased By ▼ -0.20 (-2.68%)
PRL 16.97 Decreased By ▼ -0.18 (-1.05%)
PTC 9.65 Decreased By ▼ -0.36 (-3.6%)
SILK 1.50 No Change ▼ 0.00 (0%)
SNGP 45.10 Increased By ▲ 0.10 (0.22%)
TELE 17.48 Decreased By ▼ -1.41 (-7.46%)
TRG 161.00 Decreased By ▼ -1.70 (-1.04%)
UNITY 31.80 Decreased By ▼ -1.15 (-3.49%)
WTL 2.85 Decreased By ▼ -0.09 (-3.06%)
BR100 4,718 Decreased By ▼ -14.65 (-0.31%)
BR30 22,320 Decreased By ▼ -482.1 (-2.11%)
KSE100 45,074 Decreased By ▼ -223.36 (-0.49%)
KSE30 17,742 Decreased By ▼ -68.18 (-0.38%)

Coronavirus
VERY HIGH Source: covid.gov.pk
Pakistan Deaths
27,524
4224hr
Pakistan Cases
1,236,888
2,06024hr
4.58% positivity
Sindh
454,510
Punjab
427,583
Balochistan
32,837
Islamabad
104,913
KPK
172,766
Markets

Gold inches up as weaker dollar outweighs US stimulus worries

  • Gold is seen as a hedge against inflation and currency debasement likely to result from large stimulus measures.
11 Dec 2020

Gold edged higher on Friday as the dollar hovered near a two-and-a-half-year low, helping offset concerns over delays in a US pandemic rescue package.

Spot gold rose 0.1% to $1,836.27 per ounce by 0323 GMT. US gold futures gained 0.2% to $1,840.30.

"The correlation between gold and dollar has returned because markets have more or less priced in the vaccine optimism," said Margaret Yang, a strategist at DailyFX.

Gold needs a very strong catalyst to break its descending trend and that could be in form of a dovish Federal Reserve, a larger than expected US fiscal stimulus bill or the unlikely failure of vaccines, she added.

The dollar index was down 0.2% and traded close to 90.5, its lowest since April 2018, making gold cheaper for other currency holders.

Meanwhile, data on Thursday showed US weekly jobless claims jumped to a near three-month high, further evidence that rising COVID-19 infections and lack of additional fiscal stimulus were hurting the economy.

Capping bullion's gains, however, a top Democrat suggested talks over COVID-19 stimulus package could drag on through Christmas. The US Senate will likely vote on a stopgap measure to keep the government running on Friday.

Gold is seen as a hedge against inflation and currency debasement likely to result from large stimulus measures.

The European Central Bank rolled out more stimulus measures on Thursday to lift the currency bloc's economy out of a double-dip recession.

Gold prices will remain elevated in 2021 due to accommodative rates and a weaker dollar, Fitch Solutions said in a note, adding that the improved economic outlook has reduced the possibility of significant upside.

Palladium was up 0.1% at $2,333.24. Platinum fell 0.1% to $1,025.99 and was set to decline 2.7% this week.

Comments

Comments are closed.