AIRLINK 79.41 Increased By ▲ 1.02 (1.3%)
BOP 5.33 Decreased By ▼ -0.01 (-0.19%)
CNERGY 4.38 Increased By ▲ 0.05 (1.15%)
DFML 33.19 Increased By ▲ 2.32 (7.52%)
DGKC 76.87 Decreased By ▼ -1.64 (-2.09%)
FCCL 20.53 Decreased By ▼ -0.05 (-0.24%)
FFBL 31.40 Decreased By ▼ -0.90 (-2.79%)
FFL 9.85 Decreased By ▼ -0.37 (-3.62%)
GGL 10.25 Decreased By ▼ -0.04 (-0.39%)
HBL 117.93 Decreased By ▼ -0.57 (-0.48%)
HUBC 134.10 Decreased By ▼ -1.00 (-0.74%)
HUMNL 7.00 Increased By ▲ 0.13 (1.89%)
KEL 4.67 Increased By ▲ 0.50 (11.99%)
KOSM 4.74 Increased By ▲ 0.01 (0.21%)
MLCF 37.44 Decreased By ▼ -1.23 (-3.18%)
OGDC 136.70 Increased By ▲ 1.85 (1.37%)
PAEL 23.15 Decreased By ▼ -0.25 (-1.07%)
PIAA 26.55 Decreased By ▼ -0.09 (-0.34%)
PIBTL 7.00 Decreased By ▼ -0.02 (-0.28%)
PPL 113.75 Increased By ▲ 0.30 (0.26%)
PRL 27.52 Decreased By ▼ -0.21 (-0.76%)
PTC 14.75 Increased By ▲ 0.15 (1.03%)
SEARL 57.20 Increased By ▲ 0.70 (1.24%)
SNGP 67.50 Increased By ▲ 1.20 (1.81%)
SSGC 11.09 Increased By ▲ 0.15 (1.37%)
TELE 9.23 Increased By ▲ 0.08 (0.87%)
TPLP 11.56 Decreased By ▼ -0.11 (-0.94%)
TRG 72.10 Increased By ▲ 0.67 (0.94%)
UNITY 24.82 Increased By ▲ 0.31 (1.26%)
WTL 1.40 Increased By ▲ 0.07 (5.26%)
BR100 7,526 Increased By 32.9 (0.44%)
BR30 24,650 Increased By 91.4 (0.37%)
KSE100 71,971 Decreased By -80.5 (-0.11%)
KSE30 23,749 Decreased By -58.8 (-0.25%)
Markets

Gold holds tight range as markets await Fed cues

  • May US retail sales data due at 1230 GMT.
  • Fed to announce QE taper in Aug or Sept –poll.
  • Platinum, silver shed nearly 1%, palladium ticks up.
Published June 15, 2021

Gold prices were subdued in a tight range on Tuesday ahead of a US Federal Reserve meeting that could provide an indication on the eventual withdrawal of economic support.

Spot gold edged 0.1% lower to $1,863.30 per ounce by 1130 GMT. Prices touched a near one-month low of $1,843.99 on Monday.

US gold futures were flat at $1,865.60.

"Investors are being cautious ... with very little appetite at the moment to drive gold in one direction or the other," said CMC Markets UK's chief market analyst, Michael Hewson.

For the second time in less than a decade, the Fed is getting ready to launch a debate over how and when to sunset a massive asset-purchase program.

"It's just not necessary; that amount of stimulus, at this stage of the economic rebound, so that's why we're seeing a little bit of weakness in gold prices over the past two to three days. The picture will become a lot clearer tomorrow," CMC's Hewson added.

Nearly 60% of economists in a Reuters poll said a taper announcement will come next quarter.

"We expect gold to end at $1,800 by end 2021 as the global vaccination drive gathers pace while the Fed turns increasingly less dovish on its monetary stance, driving real rates higher and in turn pushing gold prices down," analysts at OCBC said in a note.

Investors also awaited a slew of US economic data, including monthly retail sales.

"There'll be some focus on the Producer Price Index (PPI) for May ... it could provide clues on whether to expect further inflationary pressures down the road," Lukman Otunuga, analyst at FXTM, said in a note.

The dollar index rose 0.1%, potentially decreasing bullion's appeal for those holding other currencies.

Elsewhere, silver shed 0.8% to $27.62 per ounce, platinum slipped 0.71 %, to $1,156.74, while palladium rose 0.3% to $2,760.19.

Comments

Comments are closed.