AIRLINK 78.39 Increased By ▲ 5.39 (7.38%)
BOP 5.34 Decreased By ▼ -0.01 (-0.19%)
CNERGY 4.33 Increased By ▲ 0.02 (0.46%)
DFML 30.87 Increased By ▲ 2.32 (8.13%)
DGKC 78.51 Increased By ▲ 4.22 (5.68%)
FCCL 20.58 Increased By ▲ 0.23 (1.13%)
FFBL 32.30 Increased By ▲ 1.40 (4.53%)
FFL 10.22 Increased By ▲ 0.16 (1.59%)
GGL 10.29 Decreased By ▼ -0.10 (-0.96%)
HBL 118.50 Increased By ▲ 2.53 (2.18%)
HUBC 135.10 Increased By ▲ 2.90 (2.19%)
HUMNL 6.87 Increased By ▲ 0.19 (2.84%)
KEL 4.17 Increased By ▲ 0.14 (3.47%)
KOSM 4.73 Increased By ▲ 0.13 (2.83%)
MLCF 38.67 Increased By ▲ 0.13 (0.34%)
OGDC 134.85 Increased By ▲ 1.00 (0.75%)
PAEL 23.40 Decreased By ▼ -0.43 (-1.8%)
PIAA 26.64 Decreased By ▼ -0.49 (-1.81%)
PIBTL 7.02 Increased By ▲ 0.26 (3.85%)
PPL 113.45 Increased By ▲ 0.65 (0.58%)
PRL 27.73 Decreased By ▼ -0.43 (-1.53%)
PTC 14.60 Decreased By ▼ -0.29 (-1.95%)
SEARL 56.50 Increased By ▲ 0.08 (0.14%)
SNGP 66.30 Increased By ▲ 0.50 (0.76%)
SSGC 10.94 Decreased By ▼ -0.07 (-0.64%)
TELE 9.15 Increased By ▲ 0.13 (1.44%)
TPLP 11.67 Decreased By ▼ -0.23 (-1.93%)
TRG 71.43 Increased By ▲ 2.33 (3.37%)
UNITY 24.51 Increased By ▲ 0.80 (3.37%)
WTL 1.33 No Change ▼ 0.00 (0%)
BR100 7,493 Increased By 58.6 (0.79%)
BR30 24,558 Increased By 338.4 (1.4%)
KSE100 72,052 Increased By 692.5 (0.97%)
KSE30 23,808 Increased By 241 (1.02%)
Markets

Gold gains as dollar extends slide, stimulus hopes firm

  • The non-farm payrolls data last week has bolstered bets the easy monetary policy is with us for a bit longer than expected, said DailyFX currency strategist Ilya Spivak.
Published February 9, 2021

Gold prices rose to a near one-week high on Tuesday as the dollar faltered and expectations firmed that a massive US fiscal stimulus to revive the world's largest economy will soon be passed.

Spot gold rose 0.6% to $1,841.11 per ounce by 0304 GMT, having hit $1,842.30 earlier in the session, its highest since Feb. 3. US gold futures gained 0.4% to $1,841.70.

"The main driver for gold is the confidence around US President Joe Biden's relief bill and the expectation of a further weakening of the U.S dollar which will come as a result of the aid," said Michael Langford, director at corporate advisory AirGuide.

The dollar fell to an over one-week low against rival currencies, making gold cheaper for holders of other currencies.

Biden's $1.9 trillion COVID-19 relief package is expected to pass through Congress before March 15 even without Republican support.

Gold is considered a hedge against inflation and currency debasement, likely from widespread stimulus.

A record surge in Bitcoin also boosted some sentiment, analysts said.

The non-farm payrolls data last week has bolstered bets the easy monetary policy is with us for a bit longer than expected, said DailyFX currency strategist Ilya Spivak.

However, higher inflation data along with vaccine adoption and easing lockdowns can nudge the Treasury yields higher and weigh on gold, Spivak added.

Investors will now be focused on Federal Reserve Chairman Jerome Powell's speech before a virtual Economic Club of New York event at 1900 GMT on Wednesday.

Among other precious metals, spot silver gained 1% to $27.53 an ounce, palladium climbed 0.4% to $2,339.33.

Platinum rose 1.7% to $1,176.80, having earlier hit its highest since August 2016 at $1,180.50.

Comments

Comments are closed.