AGL 7.11 Increased By ▲ 0.08 (1.14%)
ANL 10.69 Decreased By ▼ -0.06 (-0.56%)
AVN 76.79 Decreased By ▼ -0.51 (-0.66%)
BOP 5.55 Increased By ▲ 0.06 (1.09%)
CNERGY 5.25 Decreased By ▼ -0.01 (-0.19%)
EFERT 88.65 Increased By ▲ 0.15 (0.17%)
EPCL 74.46 Decreased By ▼ -0.44 (-0.59%)
FCCL 13.60 Decreased By ▼ -0.05 (-0.37%)
FFL 6.65 Increased By ▲ 0.03 (0.45%)
FLYNG 7.19 No Change ▼ 0.00 (0%)
GGGL 10.91 Increased By ▲ 0.01 (0.09%)
GGL 16.57 Increased By ▲ 0.05 (0.3%)
GTECH 8.66 Decreased By ▼ -0.03 (-0.35%)
HUMNL 6.93 Decreased By ▼ -0.01 (-0.14%)
KEL 2.87 Increased By ▲ 0.01 (0.35%)
LOTCHEM 26.10 Increased By ▲ 0.85 (3.37%)
MLCF 25.73 Decreased By ▼ -0.06 (-0.23%)
OGDC 77.40 No Change ▼ 0.00 (0%)
PAEL 15.53 Decreased By ▼ -0.09 (-0.58%)
PIBTL 6.04 Increased By ▲ 0.06 (1%)
PRL 16.91 Decreased By ▼ -0.28 (-1.63%)
SILK 1.27 Increased By ▲ 0.01 (0.79%)
TELE 10.74 Decreased By ▼ -0.01 (-0.09%)
TPL 9.14 Increased By ▲ 0.04 (0.44%)
TPLP 19.85 No Change ▼ 0.00 (0%)
TREET 28.70 Decreased By ▼ -0.08 (-0.28%)
TRG 77.11 Increased By ▲ 0.10 (0.13%)
UNITY 19.93 Decreased By ▼ -0.01 (-0.05%)
WAVES 12.60 Decreased By ▼ -0.05 (-0.4%)
WTL 1.38 No Change ▼ 0.00 (0%)
BR100 4,076 Increased By 3.8 (0.09%)
BR30 14,909 Increased By 18.4 (0.12%)
KSE100 41,181 Increased By 20.9 (0.05%)
KSE30 15,654 Decreased By -5.9 (-0.04%)
Markets

Gold prices at 1-1/2-week low on dollar strength as Fed meeting looms

  • Meanwhile, speculators reduced their net long positions in COMEX gold in the week ended June 8 and raised their net long positions in silver.
14 Jun, 2021

Gold prices slipped on Monday to their lowest in more than a week, weighed down by a stronger dollar, while investors awaited cues from the Federal Reserve policy meeting this week with recent spikes in US consumer prices seen as a temporary blip.

Spot gold was down 0.6% at $1,864.58 per ounce, as of 0311 GMT, its lowest since June 4.

US gold futures fell 0.6% to $1,867.60 per ounce.

"The market is starting to anticipate maybe a modest pivot towards discussing taper and it's sending investors into more of a either profit-taking or reducing gold and also currency positions," said Stephen Innes, managing partner at SPI Asset Management.

"Because of this the dollar has also gotten a little bit stronger. I think primarily, the inflation pressures are at a state that they may not last, so there's a little bit of uncertainty how CPI is going to continue playing out."

The dollar strengthened 0.1% to hover near a one-week high against its rivals, making gold more expensive for holders of other currencies.

Last week, data showed US consumer prices rose solidly in May. However, Fed officials have repeatedly said that inflation would be transitory and expect monetary stimulus would stay in place for some time.

Focus now shifts to the Fed's June 15-16 meeting for further clarity on the policymakers' view on rising inflation and monetary policy going forward.

Morgan Stanley in its research note on Friday said it expects the Fed at its upcoming policy meeting to lay the groundwork for increased flexibility on its quantitative easing program by "talking about talking about tapering".

Meanwhile, speculators reduced their net long positions in COMEX gold in the week ended June 8 and raised their net long positions in silver.

Elsewhere, silver slipped 0.3% to $27.80 per ounce, palladium eased 0.2% to $2,771.31, while platinum dipped 0.6% to $1,143.71.

Comments

Comments are closed.