AGL 5.60 Decreased By ▼ -0.18 (-3.11%)
ANL 8.90 Increased By ▲ 0.02 (0.23%)
AVN 76.85 Decreased By ▼ -2.07 (-2.62%)
BOP 5.26 Decreased By ▼ -0.02 (-0.38%)
CNERGY 4.63 Decreased By ▼ -0.07 (-1.49%)
EFERT 81.27 Decreased By ▼ -0.33 (-0.4%)
EPCL 50.08 Decreased By ▼ -0.83 (-1.63%)
FCCL 13.16 Decreased By ▼ -0.22 (-1.64%)
FFL 5.69 Decreased By ▼ -0.03 (-0.52%)
FLYNG 7.07 Decreased By ▼ -0.08 (-1.12%)
FNEL 4.79 Decreased By ▼ -0.03 (-0.62%)
GGGL 8.80 Decreased By ▼ -0.10 (-1.12%)
GGL 14.55 Decreased By ▼ -1.33 (-8.38%)
HUMNL 5.69 Decreased By ▼ -0.08 (-1.39%)
KEL 2.63 Decreased By ▼ -0.03 (-1.13%)
LOTCHEM 28.60 Decreased By ▼ -0.45 (-1.55%)
MLCF 24.49 Decreased By ▼ -0.61 (-2.43%)
OGDC 72.43 Decreased By ▼ -0.02 (-0.03%)
PAEL 15.36 Increased By ▲ 0.01 (0.07%)
PIBTL 5.00 Decreased By ▼ -0.05 (-0.99%)
PRL 16.10 Decreased By ▼ -0.19 (-1.17%)
SILK 1.08 Decreased By ▼ -0.01 (-0.92%)
TELE 9.14 Decreased By ▼ -0.23 (-2.45%)
TPL 7.23 Decreased By ▼ -0.10 (-1.36%)
TPLP 18.61 Decreased By ▼ -0.34 (-1.79%)
TREET 21.68 Decreased By ▼ -0.32 (-1.45%)
TRG 136.71 Decreased By ▼ -4.44 (-3.15%)
UNITY 16.88 Decreased By ▼ -0.14 (-0.82%)
WAVES 9.86 Decreased By ▼ -0.04 (-0.4%)
WTL 1.41 No Change ▼ 0.00 (0%)
BR100 4,225 Decreased By -29.6 (-0.7%)
BR30 15,518 Decreased By -214.7 (-1.36%)
KSE100 42,150 Decreased By -243.4 (-0.57%)
KSE30 15,588 Decreased By -75.7 (-0.48%)
Follow us

AMSTERDAM/LONDON: Gold was subdued on Tuesday as some investors were wary about the possibility of the US Federal Reserve hinting at an eventual cutting back of stimulus at its policy meeting.

Spot gold edged 0.1% lower to $1,864.86 per ounce by 10:00 a.m EDT (1400 GMT), while US gold futures rose 0.2% to $1,868.70.

“The (gold) market is waiting to hear what the Fed has to say about inflation” said Bob Haberkorn, senior market strategist at RJO Futures, adding while the Fed is unlikely to raise rates, it could be a “big” day for gold traders if they even talk about tapering or raising rates.

While the Fed has repeatedly said that current price spikes are transitory, its two-day meeting ending on Wednesday could feature initial discussions among policymakers about when and how fast to pare back its massive bond-buying program to address inflation.

Any hint of tapering discussions or presence of hawks in the meeting could deal a blow to gold prices, potentially dragging them below the $1,855 level, Lukman Otunuga, analyst at FXTM, said in a note.

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

Further dimming gold’s appeal, the dollar index firmed after hitting a one-month peak and benchmark yields rose, increasing non-yielding gold’s opportunity cost.

On the physical front, consultants Metals Focus said decreased buying of bullion by exchange traded funds could limit gold demand this year.

Meanwhile, data showed US retail sales falling more than expected in May, while producer prices rose more than expected.

The data also showed a drop in receipts at auto dealerships.

While lower automobile output due to the global semi-conductor shortage should weigh on platinum and palladium’s auto-catalyst demand, concerns over inflation should support the metals, RJO’s Haberkorn said.

Elsewhere, silver shed 0.7% to $27.63 per ounce, platinum fell 1.5% to $1,147.65, while palladium rose 0.3% to $2,759.45.

Comments

Comments are closed.

Gold locked in tight range in Europe

PM Shehbaz condemns assassination attempt on Pakistani envoy in Kabul

Saudi Arabia extends term of $3bn deposit: SBP

Rupee remains unchanged against US dollar

Giving the govt a chance, sit with us and call elections: Imran Khan

Oil ticks up ahead of OPEC+ meeting, EU Russian oil ban

OMCs take a hit as petroleum sales drop in Pakistan

Pakistan's pitches from 'dark ages', says cricket chief Ramiz

India to continue buying Russian oil: ministry source

Imran Khan says Senator Azam Swati treated in 'vengeful manner'

Qurat ul Ain Fatima appointed new ECP spokesperson