AGL 8.30 Increased By ▲ 0.44 (5.6%)
ANL 10.59 Increased By ▲ 0.24 (2.32%)
AVN 78.60 Increased By ▲ 0.70 (0.9%)
BOP 5.45 Increased By ▲ 0.06 (1.11%)
CNERGY 5.59 Increased By ▲ 0.58 (11.58%)
EFERT 80.25 Decreased By ▼ -0.55 (-0.68%)
EPCL 69.60 Increased By ▲ 1.50 (2.2%)
FCCL 15.30 Increased By ▲ 0.74 (5.08%)
FFL 6.53 Increased By ▲ 0.33 (5.32%)
FLYNG 7.18 Increased By ▲ 0.53 (7.97%)
GGGL 10.85 Increased By ▲ 0.27 (2.55%)
GGL 16.79 Increased By ▲ 0.38 (2.32%)
GTECH 8.14 Increased By ▲ 0.02 (0.25%)
HUMNL 7.04 Increased By ▲ 0.02 (0.28%)
KEL 2.99 Increased By ▲ 0.11 (3.82%)
LOTCHEM 30.77 Increased By ▲ 2.24 (7.85%)
MLCF 28.98 Increased By ▲ 2.03 (7.53%)
OGDC 82.75 Increased By ▲ 0.60 (0.73%)
PAEL 16.97 Increased By ▲ 0.32 (1.92%)
PIBTL 6.08 Increased By ▲ 0.24 (4.11%)
PRL 18.10 Increased By ▲ 1.35 (8.06%)
SILK 1.15 Increased By ▲ 0.05 (4.55%)
TELE 11.25 Increased By ▲ 0.28 (2.55%)
TPL 9.20 Decreased By ▼ -0.02 (-0.22%)
TPLP 19.88 Increased By ▲ 0.22 (1.12%)
TREET 26.46 Increased By ▲ 0.55 (2.12%)
TRG 94.60 Increased By ▲ 0.99 (1.06%)
UNITY 19.50 Increased By ▲ 0.50 (2.63%)
WAVES 14.34 Increased By ▲ 0.78 (5.75%)
WTL 1.30 Increased By ▲ 0.06 (4.84%)
BR100 4,187 Increased By 80.1 (1.95%)
BR30 15,474 Increased By 343.5 (2.27%)
KSE100 42,096 Increased By 670.9 (1.62%)
KSE30 15,883 Increased By 222.7 (1.42%)
Markets

Gold set for third weekly gain as traders eye US fiscal support

  • A break above the $1,892 area with support from a dovish U.S Federal Reserve and a weaker dollar could signal further upside with resistance at $1,910 ahead, Yang said.
Published December 18, 2020

Gold prices retreated on Friday as the dollar rebounded, after growing US stimulus hopes drove a three-day rally in bullion, putting the metal on course for a third consecutive weekly gain.

Spot gold dipped 0.1% to $1,884.41 per ounce by 0531 GMT. For the week, it was up 2.4%. US gold futures slipped 0.1% to $1,889.40.

"The U.S fiscal stimulus is more or less priced in ... so traders are trying to lock in profit before the weekend," said Margaret Yang, a strategist at DailyFX.

US Congressional Republicans and Democrats scrambled to pass a new round of coronavirus aid on Thursday with lawmakers from both parties saying that failure to reach an agreement was no longer an option.

While a stimulus deal could spur gold prices higher, a more sustained ascent would require signs of a significant pick-up in inflationary pressures, said FXTM market analyst Han Tan.

The US dollar rose 0.2%, just above a more than two-year trough, lowering gold's appeal to other currency holders.

A break above the $1,892 area with support from a dovish U.S Federal Reserve and a weaker dollar could signal further upside with resistance at $1,910 ahead, Yang said.

Analysts also said gold would find support from the Fed's promise to continue its bond-buying programme until "substantial further progress" is seen in restoring full employment and hitting its 2% inflation target.

Silver slipped 1.1% to $25.77 an ounce. Platinum fell 1% to $1,033.67 and palladium rose 0.1% to $2,343.18 and was up 0.8% for the week.

Comments

Comments are closed.