AGL 7.03 Increased By ▲ 0.41 (6.19%)
ANL 10.75 Increased By ▲ 0.34 (3.27%)
AVN 77.30 Increased By ▲ 0.40 (0.52%)
BOP 5.49 Increased By ▲ 0.05 (0.92%)
CNERGY 5.26 Increased By ▲ 0.01 (0.19%)
EFERT 88.50 Decreased By ▼ -0.32 (-0.36%)
EPCL 74.90 Decreased By ▼ -1.10 (-1.45%)
FCCL 13.65 Decreased By ▼ -0.10 (-0.73%)
FFL 6.62 Increased By ▲ 0.02 (0.3%)
FLYNG 7.19 Increased By ▲ 0.07 (0.98%)
GGGL 10.90 Decreased By ▼ -0.06 (-0.55%)
GGL 16.52 Increased By ▲ 0.04 (0.24%)
GTECH 8.69 Increased By ▲ 0.06 (0.7%)
HUMNL 6.94 Increased By ▲ 0.12 (1.76%)
KEL 2.86 No Change ▼ 0.00 (0%)
LOTCHEM 25.25 Increased By ▲ 0.22 (0.88%)
MLCF 25.79 Increased By ▲ 0.10 (0.39%)
OGDC 77.40 Increased By ▲ 0.36 (0.47%)
PAEL 15.62 No Change ▼ 0.00 (0%)
PIBTL 5.98 Increased By ▲ 0.03 (0.5%)
PRL 17.19 Decreased By ▼ -0.02 (-0.12%)
SILK 1.26 Increased By ▲ 0.03 (2.44%)
TELE 10.75 Increased By ▲ 0.02 (0.19%)
TPL 9.10 Increased By ▲ 0.07 (0.78%)
TPLP 19.85 Increased By ▲ 0.15 (0.76%)
TREET 28.78 Increased By ▲ 0.18 (0.63%)
TRG 77.01 Increased By ▲ 0.76 (1%)
UNITY 19.94 Increased By ▲ 0.06 (0.3%)
WAVES 12.65 Decreased By ▼ -0.15 (-1.17%)
WTL 1.38 Increased By ▲ 0.01 (0.73%)
BR100 4,072 Increased By 15.3 (0.38%)
BR30 14,890 Decreased By -16.8 (-0.11%)
KSE100 41,160 Increased By 57.2 (0.14%)
KSE30 15,660 Increased By 25.2 (0.16%)
Markets

Gold edges higher on subdued dollar ahead of Powell's testimony

  • Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.3% on Monday.
22 Jun, 2021

Gold inched higher on Tuesday as a halt in the dollar's rally bolstered the appeal of the precious metal ahead of US Federal Reserve Chairman Jerome Powell's testimony to Congress.

Spot gold was up 0.3% at $1,787.80 per ounce by 0454 GMT, after rising more than 1% in the previous session.

US gold futures gained 0.3% to $1,787.70.

"Gold rose overnight as the US dollar retreated and that (upbeat) sentiment continues in Asia this morning, as regional investors hurry to New York's overnight lead," said Jeffrey Halley, senior market analyst at OANDA.

Making gold less expensive for holders of other currencies, the dollar index slipped from a two-month high against its rivals.

All eyes are now on Powell, who will appear before Congress at 1800 GMT.

The US economy continues to show "sustained improvement" from the impact of the COVID-19 pandemic and ongoing job market gains, but inflation has "increased notably in recent months," he said in his prepared remarks.

Gold is viewed as a hedge against higher inflation that could follow stimulus measures.

The US central bank in its latest policy meeting hinted at sooner-than-expected interest rate hikes and tapering of its asset purchase programme, which sent gold prices sharply lower last week.

However, hawkish Fed officials such as St. Louis Fed President James Bullard and Dallas Fed President Robert Kaplan on Monday offered toned-down rhetoric.

"Despite the rebound, gold prices were being traded mostly within last Friday's chart pattern, a pattern that is more reflective of a pause and indecision," Avtar Sandu, a senior commodities manager at Phillip Futures, said in a note.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.3% on Monday.

Elsewhere, silver inched 0.1% higher to $25.97 per ounce, palladium eased 0.1% to $2,583.24 and platinum climbed 0.9% to $1,063.13 per ounce.

Comments

Comments are closed.