AIRLINK 62.48 Increased By ▲ 2.05 (3.39%)
BOP 5.36 Increased By ▲ 0.01 (0.19%)
CNERGY 4.58 Decreased By ▼ -0.02 (-0.43%)
DFML 15.50 Increased By ▲ 0.66 (4.45%)
DGKC 66.40 Increased By ▲ 1.60 (2.47%)
FCCL 17.59 Increased By ▲ 0.73 (4.33%)
FFBL 27.70 Increased By ▲ 2.95 (11.92%)
FFL 9.27 Increased By ▲ 0.21 (2.32%)
GGL 10.06 Increased By ▲ 0.10 (1%)
HBL 105.70 Increased By ▲ 1.49 (1.43%)
HUBC 122.30 Increased By ▲ 4.78 (4.07%)
HUMNL 6.60 Increased By ▲ 0.06 (0.92%)
KEL 4.50 Decreased By ▼ -0.05 (-1.1%)
KOSM 4.48 Decreased By ▼ -0.09 (-1.97%)
MLCF 36.20 Increased By ▲ 0.79 (2.23%)
OGDC 122.92 Increased By ▲ 0.53 (0.43%)
PAEL 23.00 Increased By ▲ 1.09 (4.97%)
PIAA 29.34 Increased By ▲ 2.05 (7.51%)
PIBTL 5.80 Decreased By ▼ -0.14 (-2.36%)
PPL 107.50 Increased By ▲ 0.13 (0.12%)
PRL 27.25 Increased By ▲ 0.74 (2.79%)
PTC 18.07 Increased By ▲ 1.97 (12.24%)
SEARL 53.00 Decreased By ▼ -0.63 (-1.17%)
SNGP 63.21 Increased By ▲ 2.01 (3.28%)
SSGC 10.80 Increased By ▲ 0.05 (0.47%)
TELE 9.20 Increased By ▲ 0.71 (8.36%)
TPLP 11.44 Increased By ▲ 0.86 (8.13%)
TRG 70.86 Increased By ▲ 0.95 (1.36%)
UNITY 23.62 Increased By ▲ 0.11 (0.47%)
WTL 1.28 No Change ▼ 0.00 (0%)
BR100 6,941 Increased By 63.6 (0.92%)
BR30 22,802 Increased By 233 (1.03%)
KSE100 67,142 Increased By 594.3 (0.89%)
KSE30 22,090 Increased By 175.1 (0.8%)
Markets

Gold rises as easing bond yields offset firm dollar

  • Powell's comments at virtual Jobs Summit awaited.
  • US Senate delays debate on $1.9 trillion stimulus bill.
  • Spot gold was up 0.5% at $1,719.67 per ounce.
Published March 4, 2021

Gold rose on Thursday, buoyed by lower US Treasury yields, but a firm dollar limited bullion's advance and kept it near a nine-month low.

Spot gold was up 0.5% at $1,719.67 per ounce at 1228 GMT, having dropped on Wednesday to its lowest since June 9 at $1,701.40. US gold futures rose 0.1% to $1,717.70.

The US dollar climbed 0.2% against key rivals, making gold more expensive for investors holding other currencies.

US Treasury yields inched down, but were still at elevated levels, while Germany's 10-year yield also eased.

"You have two conflicting forces," Quantitative Commodity Research analyst Peter Fertig said.

"However, it is still not an environment, currently, which would argue to be overweight in the precious metals," and rather than overall (yield) levels, it's more the change in bond yields that would impact gold prices, Fertig added.

Gold is considered a hedge against inflation which could result from massive economic stimulus measures, but that status has been threatened by higher bond yields, which increase the opportunity cost of holding non-yielding bullion.

Investors awaited any remarks from U.S. Federal Reserve Chair Jerome Powell on the rapid rise in yields and clues on policy outlook when he speaks at a virtual Wall Street Journal Jobs Summit at 1705 GMT.

The market will need more than "jawboning" if the Fed is serious about keeping interest rates low and the yield curve would continue to steepen in the absence of that, which is negative for gold, said Howie Lee, an economist at OCBC Bank.

Meanwhile, the US Senate delayed a debate on a $1.9 trillion COVID-19 relief bill until at least Thursday.

Silver was steady at $26.09 per ounce, while palladium slipped 0.1% to $2,350.68. Platinum fell 0.5% to $1,160.98 per ounce.

Comments

Comments are closed.