AGL 8.33 Decreased By ▼ -0.09 (-1.07%)
ANL 10.70 Decreased By ▼ -0.05 (-0.47%)
AVN 78.19 Decreased By ▼ -0.71 (-0.9%)
BOP 5.57 Increased By ▲ 0.07 (1.27%)
CNERGY 5.38 Decreased By ▼ -0.09 (-1.65%)
EFERT 78.65 Decreased By ▼ -1.25 (-1.56%)
EPCL 67.79 Decreased By ▼ -1.21 (-1.75%)
FCCL 14.50 Decreased By ▼ -0.50 (-3.33%)
FFL 6.60 Increased By ▲ 0.15 (2.33%)
FLYNG 7.03 Decreased By ▼ -0.21 (-2.9%)
GGGL 11.34 Increased By ▲ 0.47 (4.32%)
GGL 17.24 Increased By ▲ 0.39 (2.31%)
GTECH 8.30 Increased By ▲ 0.18 (2.22%)
HUMNL 7.06 Decreased By ▼ -0.05 (-0.7%)
KEL 3.08 Increased By ▲ 0.03 (0.98%)
LOTCHEM 32.87 Increased By ▲ 0.35 (1.08%)
MLCF 28.30 Decreased By ▼ -0.31 (-1.08%)
OGDC 84.55 Increased By ▲ 0.05 (0.06%)
PAEL 16.45 Decreased By ▼ -0.35 (-2.08%)
PIBTL 5.85 Decreased By ▼ -0.15 (-2.5%)
PRL 18.12 Increased By ▲ 0.05 (0.28%)
SILK 1.14 Decreased By ▼ -0.01 (-0.87%)
TELE 11.10 Decreased By ▼ -0.22 (-1.94%)
TPL 9.00 Decreased By ▼ -0.20 (-2.17%)
TPLP 19.88 Decreased By ▼ -0.12 (-0.6%)
TREET 26.62 Increased By ▲ 0.19 (0.72%)
TRG 94.50 Decreased By ▼ -0.89 (-0.93%)
UNITY 20.37 Increased By ▲ 0.30 (1.49%)
WAVES 13.63 Decreased By ▼ -0.21 (-1.52%)
WTL 1.31 Decreased By ▼ -0.02 (-1.5%)
BR100 4,209 Decreased By -29.7 (-0.7%)
BR30 15,445 Decreased By -108.8 (-0.7%)
KSE100 42,243 Decreased By -251.5 (-0.59%)
KSE30 15,972 Decreased By -108.3 (-0.67%)
Markets

Gold firms as dollar, yields ease; Biden stimulus plan in focus

  • Dollar hovers near one-week low.
  • US Fed's policy meeting starts on Tuesday.
Published January 25, 2021

Gold prices rose on Monday as the dollar and yields remained under pressure, with investors eyeing a dovish US Federal Reserve and a big stimulus package under US President Joe Biden's administration.

Spot gold was up 0.5% at $1,860.90 per ounce by 1214 GMT, having fallen as much as 1.8% on Friday. US gold futures rose 0.2% to $1,860.20.

"We are seeing slightly softer yields in the US so that could be supporting gold... Broadly we are seeing some consolidation after Friday's fall," said OANDA analyst Craig Erlam.

The dollar held close to one-week lows, making gold cheaper for holders of other currencies, while US Treasury yields inched down.

"It's clear that the economy is quite fragile, so there is a lot of support for fiscal and monetary stimulus, and as such the dollar remains relatively weak, which may underpin gold," said independent analyst Ross Norman.

Biden's administration has emphasised the urgency for a $1.9 trillion pandemic relief proposal while trying to calm Republican concerns about it being too expensive.

The US Federal Reserve's two-day policy meeting starts on Tuesday, as it is set to look beyond possible post-pandemic inflation shock.

"Optimism around a $1.9 trillion fiscal stimulus may fuel expectations of the Fed tapering some of its ongoing support. Any taper talk could steepen the US Treasury yield curve, which may provide support to the dollar, ultimately pressuring gold prices," said Lukman Otunuga, senior research analyst at FXTM.

"However, if the Fed expresses a willingness to maintain its ultra-accommodative monetary policy stance, gold is likely to shine."

Non-yielding gold is considered a hedge against inflation that can result from large stimulus measures.

Silver gained 0.8% to $25.60 an ounce, platinum rose 0.9% to $1,108.39 and palladium added 0.1% to $2,356.07.

Comments

Comments are closed.