ANL 31.89 Increased By ▲ 0.84 (2.71%)
ASC 19.60 Increased By ▲ 0.59 (3.1%)
ASL 26.74 Decreased By ▼ -0.61 (-2.23%)
AVN 91.00 Decreased By ▼ -0.39 (-0.43%)
BOP 8.38 No Change ▼ 0.00 (0%)
BYCO 12.89 Decreased By ▼ -0.14 (-1.07%)
DGKC 127.75 Decreased By ▼ -3.00 (-2.29%)
EPCL 48.95 Decreased By ▼ -0.49 (-0.99%)
FCCL 24.05 Decreased By ▼ -0.35 (-1.43%)
FFBL 26.45 Decreased By ▼ -0.50 (-1.86%)
FFL 17.25 Decreased By ▼ -0.24 (-1.37%)
HASCOL 12.23 Increased By ▲ 0.33 (2.77%)
HUBC 81.68 Increased By ▲ 0.68 (0.84%)
HUMNL 8.63 Increased By ▲ 0.14 (1.65%)
JSCL 24.17 Decreased By ▼ -0.13 (-0.53%)
KAPCO 43.53 Decreased By ▼ -0.10 (-0.23%)
KEL 4.48 Decreased By ▼ -0.22 (-4.68%)
LOTCHEM 15.88 Decreased By ▼ -0.32 (-1.98%)
MLCF 48.26 Decreased By ▼ -1.06 (-2.15%)
PAEL 35.85 Decreased By ▼ -0.35 (-0.97%)
PIBTL 11.21 Decreased By ▼ -0.18 (-1.58%)
POWER 10.32 Decreased By ▼ -0.22 (-2.09%)
PPL 91.16 Decreased By ▼ -1.24 (-1.34%)
PRL 25.65 Decreased By ▼ -1.05 (-3.93%)
PTC 12.95 Increased By ▲ 0.05 (0.39%)
SILK 1.59 Decreased By ▼ -0.02 (-1.24%)
SNGP 48.40 Decreased By ▼ -0.95 (-1.93%)
TRG 165.99 Increased By ▲ 0.09 (0.05%)
UNITY 47.99 Decreased By ▼ -0.31 (-0.64%)
WTL 3.84 Decreased By ▼ -0.15 (-3.76%)
BR100 5,299 Decreased By ▼ -33.85 (-0.63%)
BR30 27,755 Decreased By ▼ -182.1 (-0.65%)
KSE100 48,481 Decreased By ▼ -151.66 (-0.31%)
KSE30 19,548 Decreased By ▼ -77.25 (-0.39%)
Markets

Gold slips on dollar strength, caution ahead of US CPI data

  • ECB keeps policy unchanged.
  • Gold hits one-week low at $1,875.89/oz.
10 Jun 2021

Gold prices fell on Thursday as the dollar firmed while investors awaited US inflation data to gauge the Federal Reserve's monetary policy stance.

Spot gold was 0.6% lower at $1,877.40 per ounce by 1153 GMT, having earlier hit its lowest level since June 4 at $1,875.89.

US gold futures dropped 0.8% to $1,879.40 per ounce.

The dollar index ticked up, making gold less appealing for those holding other currencies.

"Further signs of inflationary pressures could sweeten appetite for gold ... However, upside gains may be capped by an appreciating dollar if inflation fears send US Treasury yields climbing," said Lukman Otunuga, senior research analyst at FXTM.

Higher yields threaten gold's appeal as an inflation hedge as they raise the opportunity cost of holding non interest-bearing bullion.

"There is a sense in the market that the Fed got the market under control saying that the inflation is transitory, so that's the whole focus right now, whether that can be achieved or not," said Ole Hansen, head of commodity strategy at Saxo Bank.

Economists polled by Reuters expect the highly anticipated May US consumer price index (CPI) data, due at 1230 GMT, to rise 0.4%, after CPI surged by the most in nearly 12 years in April.

But, current inflationary trends are unlikely to be "bullish" for gold and silver, Carsten Menke, analyst at Julius Baer said.

Menke added that current price hikes are transitory and tied to the economic recovery, likely signalling weaker gold prices ahead.

Weekly US jobless claims are also due at 1230 GMT.

The European Central Bank said it would continue to run its emergency bond purchases at a higher pace than at the beginning of the year, fearing that any retreat could sharply raise borrowing costs and smother a long delayed recovery.

Silver fell 0.4% to $27.64 per ounce, palladium dropped 0.5% to $2,764.95, while platinum was down 0.9% at $1,140.16.