ANL 16.20 Decreased By ▼ -0.18 (-1.1%)
ASC 14.63 Increased By ▲ 0.95 (6.94%)
ASL 20.04 Decreased By ▼ -0.41 (-2%)
BOP 8.55 Decreased By ▼ -0.05 (-0.58%)
BYCO 7.53 Increased By ▲ 0.24 (3.29%)
FCCL 17.50 Increased By ▲ 0.11 (0.63%)
FFBL 23.15 Increased By ▲ 1.68 (7.82%)
FFL 15.25 Increased By ▲ 0.35 (2.35%)
FNEL 7.35 Increased By ▲ 0.05 (0.68%)
GGGL 17.15 Increased By ▲ 0.74 (4.51%)
GGL 29.95 Increased By ▲ 0.10 (0.34%)
HUMNL 5.96 Increased By ▲ 0.17 (2.94%)
JSCL 20.68 Increased By ▲ 0.28 (1.37%)
KAPCO 28.99 Increased By ▲ 0.31 (1.08%)
KEL 3.48 Increased By ▲ 0.03 (0.87%)
MDTL 2.11 Decreased By ▼ -0.09 (-4.09%)
MLCF 33.60 Increased By ▲ 0.18 (0.54%)
NETSOL 106.00 Decreased By ▼ -1.55 (-1.44%)
PACE 4.33 Decreased By ▼ -0.17 (-3.78%)
PAEL 27.95 Increased By ▲ 0.75 (2.76%)
PIBTL 8.70 Increased By ▲ 0.10 (1.16%)
POWER 6.90 Decreased By ▼ -0.03 (-0.43%)
PRL 17.18 Increased By ▲ 0.87 (5.33%)
PTC 9.30 Increased By ▲ 0.12 (1.31%)
SILK 1.44 No Change ▼ 0.00 (0%)
SNGP 42.33 Increased By ▲ 0.27 (0.64%)
TELE 16.45 Decreased By ▼ -0.09 (-0.54%)
TRG 135.78 Decreased By ▼ -2.22 (-1.61%)
UNITY 29.90 Increased By ▲ 1.40 (4.91%)
WTL 2.40 Decreased By ▼ -0.05 (-2.04%)
BR100 4,668 Increased By ▲ 50.21 (1.09%)
BR30 20,892 Increased By ▲ 107.28 (0.52%)
KSE100 44,822 Increased By ▲ 487.85 (1.1%)
KSE30 17,521 Increased By ▲ 178.45 (1.03%)

Coronavirus
LOW Source: covid.gov.pk
Pakistan Deaths
28,252
2424hr
Pakistan Cases
1,263,664
89324hr
1.7% positivity
Sindh
465,175
Punjab
437,572
Balochistan
33,114
Islamabad
106,402
KPK
176,650
Markets

Gold above one-week low as safe-haven demand flows in

  • US 10-year yields hit over five-month low
  • Reduced risk sentiment helps gold
  • Dollar firms near multi-month highs
Updated 20 Jul 2021

Gold prices edged higher on Tuesday as concerns over the economic damage from surging cases of the Delta coronavirus variant, and a dip in US Treasury yields, pushed the metal above a one week low hit in the last session.

Spot gold was up 0.3% at $1,818.43 per ounce by 1024 GMT, having hit a low of $1,794.06 in the previous session. US gold futures gained 0.5% to $1,817.30.

"The great problem currently is the fear about the economic impacts of the Delta variant of the coronavirus. And after Japan took severe measures concerning the Olympic Games, markets got more and more nervous ... (resulting) in a flight into the safe havens," said Quantitative Commodity Research analyst Peter Fertig.

Spot gold may fall towards $1,789

A surge in coronavirus cases across the United States and other countries has sent higher-risk assets tumbling.

Tokyo Olympics organisers on Sunday reported the first COVID-19 cases among competitors in the athletes' village.

Gold, seen as a safe store of value, tends to benefit during times of political and financial uncertainty.

"Rapidly rising cases in Europe as well as in the United States prompted market participants to reduce risks in their portfolios," said Julius Baer analyst Carsten Menke.

Benchmark 10-year Treasury yields touched a more than five-month low, reducing the opportunity cost of holding non-interest bearing gold.

A firm US dollar also challenged gold's appeal, as the currency held firm near 3-1/2-month highs. A stronger dollar makes gold more expensive for other currency holders.

"If the US dollar is strengthening because the yields are falling due to flight into the safe haven then the impact (on gold) ... could be only slightly positive or even negative, as we have seen," Fertig added.

Elsewhere, platinum rose 0.2% to $1,077.42 per ounce, palladium gained 0.9% to $2,617.98, and silver eased 0.1% to $25.18.

Comments

Comments are closed.