ANL 18.23 Decreased By ▼ -1.06 (-5.5%)
ASC 13.77 Increased By ▲ 0.32 (2.38%)
ASL 22.25 Increased By ▲ 0.05 (0.23%)
BOP 8.06 Decreased By ▼ -0.12 (-1.47%)
BYCO 7.06 Decreased By ▼ -0.49 (-6.49%)
FCCL 17.41 Decreased By ▼ -0.04 (-0.23%)
FFBL 22.25 Increased By ▲ 0.15 (0.68%)
FFL 15.30 Increased By ▲ 0.10 (0.66%)
FNEL 7.25 Decreased By ▼ -0.15 (-2.03%)
GGGL 16.24 Decreased By ▼ -0.76 (-4.47%)
GGL 37.60 Decreased By ▼ -1.70 (-4.33%)
HUMNL 5.93 Increased By ▲ 0.17 (2.95%)
JSCL 17.90 Decreased By ▼ -0.10 (-0.56%)
KAPCO 35.22 Decreased By ▼ -0.73 (-2.03%)
KEL 3.28 Decreased By ▼ -0.01 (-0.3%)
MDTL 2.32 Decreased By ▼ -0.18 (-7.2%)
MLCF 34.44 Increased By ▲ 0.20 (0.58%)
NETSOL 112.60 Decreased By ▼ -7.25 (-6.05%)
PACE 4.62 Decreased By ▼ -0.32 (-6.48%)
PAEL 27.80 Increased By ▲ 1.27 (4.79%)
PIBTL 8.70 Decreased By ▼ -0.01 (-0.11%)
POWER 7.15 Decreased By ▼ -0.10 (-1.38%)
PRL 16.10 Decreased By ▼ -0.87 (-5.13%)
PTC 9.45 Decreased By ▼ -0.20 (-2.07%)
SILK 1.48 Decreased By ▼ -0.02 (-1.33%)
SNGP 45.55 Increased By ▲ 0.45 (1%)
TELE 16.17 Decreased By ▼ -1.31 (-7.49%)
TRG 159.48 Decreased By ▼ -1.52 (-0.94%)
UNITY 31.20 Decreased By ▼ -0.60 (-1.89%)
WTL 2.76 Decreased By ▼ -0.09 (-3.16%)
BR100 4,676 Decreased By ▼ -41.96 (-0.89%)
BR30 22,049 Decreased By ▼ -270.91 (-1.21%)
KSE100 44,818 Decreased By ▼ -255.76 (-0.57%)
KSE30 17,642 Decreased By ▼ -100.19 (-0.56%)

Coronavirus
HIGH Source: covid.gov.pk
Pakistan Deaths
27,638
4124hr
Pakistan Cases
1,241,825
1,40024hr
3.17% positivity
Sindh
456,343
Punjab
429,655
Balochistan
32,875
Islamabad
105,217
KPK
173,353
Markets

Gold on track for fourth weekly gain on dovish Fed rhetoric

  • Spot gold up more than 1% for the week
  • Platinum up 2.8% on the week
  • Palladium prices should trade lower into 2022
16 Jul 2021

Gold prices were headed on Friday for a fourth straight weekly gain after the US Federal Reserve allayed investor fears of a faster tightening of monetary policy, though the safe-haven metal was subdued by pressure from a firmer dollar.

Spot gold was flat at $1,827.00 per ounce, as of 0351 GMT, having hit a peak since June 16 at $1,833.65 on Thursday. Bullion gained 1.1% so far for the week.

US gold futures were flat at $1,828.80.

"This stronger dollar narrative that we're starting to see in the markets is going to limit the upside in gold," said Stephen Innes, managing partner at SPI Asset Management.

However, gold is finding support from lower real rates and the fact that some elements of the market think the Fed is not really going to push the envelope for rate hikes, Innes added.

Spot gold may rise to $1,813

Lower interest rates decrease the opportunity cost of holding non-yielding gold, also considered a hedge against inflation that could result from widespread stimulus measures.

Fed Chair Jerome Powell faced sharp questions about inflation and banking regulation in a hearing before the Senate Banking Committee on Thursday, and repeated his pledge of "powerful support" to complete the US economic recovery.

Making gold expensive for holders of other currency, the dollar was headed for its best weekly gain in almost a month.

Elsewhere, palladium rose 0.4% to $2,740.28 per ounce, but was on track for its first weekly decline in four.

"We believe palladium has likely peaked this year and should trade lower into 2022," UBS analyst Giovanni Staunovo said in a note, adding palladium auto-catalyst demand might take a hit as result of substitution from palladium to platinum.

Platinum eased 0.3% to $1,134.54 per ounce, but was up 2.8% for the week.

Comments

Comments are closed.