AIRLINK 74.40 Decreased By ▼ -0.90 (-1.2%)
BOP 4.95 Increased By ▲ 0.01 (0.2%)
CNERGY 4.34 Decreased By ▼ -0.05 (-1.14%)
DFML 44.73 Increased By ▲ 3.55 (8.62%)
DGKC 87.27 Increased By ▲ 3.96 (4.75%)
FCCL 22.90 Increased By ▲ 1.25 (5.77%)
FFBL 31.65 Decreased By ▼ -0.35 (-1.09%)
FFL 9.36 Decreased By ▼ -0.06 (-0.64%)
GGL 10.10 Increased By ▲ 0.02 (0.2%)
HASCOL 6.77 Decreased By ▼ -0.05 (-0.73%)
HBL 113.60 Decreased By ▼ -0.40 (-0.35%)
HUBC 140.15 Increased By ▲ 1.05 (0.75%)
HUMNL 11.91 Decreased By ▼ -0.09 (-0.75%)
KEL 4.87 Decreased By ▼ -0.04 (-0.81%)
KOSM 4.40 Increased By ▲ 0.04 (0.92%)
MLCF 38.40 Increased By ▲ 0.89 (2.37%)
OGDC 132.80 Decreased By ▼ -0.05 (-0.04%)
PAEL 24.45 Decreased By ▼ -0.40 (-1.61%)
PIBTL 6.53 Decreased By ▼ -0.07 (-1.06%)
PPL 119.64 Increased By ▲ 1.84 (1.56%)
PRL 25.88 Decreased By ▼ -0.18 (-0.69%)
PTC 13.75 Increased By ▲ 0.03 (0.22%)
SEARL 57.25 No Change ▼ 0.00 (0%)
SNGP 66.40 Decreased By ▼ -0.10 (-0.15%)
SSGC 10.15 Decreased By ▼ -0.09 (-0.88%)
TELE 7.95 Decreased By ▼ -0.26 (-3.17%)
TPLP 10.64 Decreased By ▼ -0.06 (-0.56%)
TRG 61.66 Decreased By ▼ -0.74 (-1.19%)
UNITY 26.63 Decreased By ▼ -0.41 (-1.52%)
WTL 1.36 Increased By ▲ 0.01 (0.74%)
BR100 7,835 Decreased By -10.7 (-0.14%)
BR30 25,330 Increased By 74.3 (0.29%)
KSE100 74,878 Increased By 41.8 (0.06%)
KSE30 23,988 Decreased By -16.5 (-0.07%)
Markets

Gold rises 1% on weaker dollar, US stimulus cheer

  • Gold is considered a hedge against inflation, likely to result from widespread stimulus, while higher bond yields challenge that status.
Published March 1, 2021

Gold prices rose more than 1% on Monday, recovering from a more than eight-month low touched in the previous session, as the dollar weakened and the United States passed a massive $1.9 trillion stimulus package.

Spot gold was up 1% at $1,750.24 per ounce by 0544 GMT, after rising as much as 1.1% earlier in the session.

US gold futures rose 1.1% to $1,748.50.

Gold prices tumbled 3% on Friday, posting their biggest monthly drop since November 2016 in February, due to a spike in US bond yields.

"A reversal of the higher yield trend and a weaker dollar are allowing gold to move a little bit higher," said Stephen Innes, chief global market strategist at financial services firm Axi, adding that the US stimulus was also underpinning bullion prices further.

US President Joe Biden scored his first legislative win as the House of Representatives passed his $1.9 trillion coronavirus relief package early Saturday.

The dollar slipped from a one-week high hit in the previous session, raising gold's appeal for holders of other currencies.

Gold is considered a hedge against inflation, likely to result from widespread stimulus, while higher bond yields challenge that status.

On the technical front, the psychological $1,700 level is very significant, while the $1,760-$1,765 range is an important hurdle for gold to rise further, Innes said.

Meanwhile, holdings in the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, fell 0.6% on Friday to the lowest since May 2020.

Speculators cut their bullish positions in COMEX gold and silver contracts in the week to Feb. 23, the US Commodity Futures Trading Commission (CFTC) said on Friday.

Silver rose 0.8% to $26.84 an ounce, while palladium climbed 1.2% to $2,344.76. Platinum gained 2.6% to $1,219.

Comments

Comments are closed.