ANL 11.12 Increased By ▲ 0.02 (0.18%)
ASC 9.98 Decreased By ▼ -0.09 (-0.89%)
ASL 11.85 Increased By ▲ 0.90 (8.22%)
AVN 71.24 Decreased By ▼ -2.07 (-2.82%)
BOP 5.95 Decreased By ▼ -0.04 (-0.67%)
CNERGY 5.27 Increased By ▲ 0.04 (0.76%)
FFL 6.70 Decreased By ▼ -0.15 (-2.19%)
FNEL 6.10 Decreased By ▼ -0.10 (-1.61%)
GGGL 11.86 Decreased By ▼ -0.47 (-3.81%)
GGL 15.92 Decreased By ▼ -0.49 (-2.99%)
GTECH 9.35 Decreased By ▼ -0.46 (-4.69%)
HUMNL 6.56 Decreased By ▼ -0.06 (-0.91%)
KEL 2.58 Decreased By ▼ -0.01 (-0.39%)
KOSM 3.06 No Change ▼ 0.00 (0%)
MLCF 28.70 Decreased By ▼ -0.15 (-0.52%)
PACE 2.99 Decreased By ▼ -0.24 (-7.43%)
PIBTL 6.09 Decreased By ▼ -0.01 (-0.16%)
PRL 15.05 Decreased By ▼ -0.18 (-1.18%)
PTC 7.17 Decreased By ▼ -0.02 (-0.28%)
SILK 1.24 Increased By ▲ 0.14 (12.73%)
SNGP 26.15 Decreased By ▼ -0.05 (-0.19%)
TELE 10.95 Decreased By ▼ -0.11 (-0.99%)
TPL 9.05 Decreased By ▼ -0.35 (-3.72%)
TPLP 15.92 Decreased By ▼ -0.38 (-2.33%)
TREET 29.90 Decreased By ▼ -0.26 (-0.86%)
TRG 77.00 Increased By ▲ 0.23 (0.3%)
UNITY 22.45 Decreased By ▼ -0.76 (-3.27%)
WAVES 12.95 Decreased By ▼ -0.30 (-2.26%)
WTL 1.55 Increased By ▲ 0.01 (0.65%)
YOUW 5.04 Decreased By ▼ -0.01 (-0.2%)
BR100 4,273 Decreased By -3.8 (-0.09%)
BR30 14,897 Decreased By -58.5 (-0.39%)
KSE100 42,983 Decreased By -43.4 (-0.1%)
KSE30 16,350 Decreased By -10.3 (-0.06%)
Markets

Gold languishes near $1,800/oz on firm dollar, Fed's taper talk jitters

  • Indicative of sentiment, holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell to 1,027.61 tonnes on Thursday
06 Aug, 2021

Gold eased on Friday, clinging to the key psychological $1,800 level as the dollar firmed, while investors awaited a key US jobs report to gauge the Federal Reserve's future policy stance.

Spot gold fell 0.2% to $1,799.84 per ounce by 0331 GMT, set for its worst weekly performance since mid-June.

US gold futures eased 0.4% to $1,801.80.

Fed taper bets knock gold in run-up to US jobs data

"If we get a combination of really solid payroll numbers coming on back of a hawkish rhetoric by the Fed, I think it'll spook any interest rate sensitive markets like gold... That's why we're seeing risk reductions right now," said Stephen Innes, managing partner at SPI Asset Management.

However, a complete meltdown in gold is highly unlikely and support level of $1,790 should hold, he added.

Jitters around tapering set in following Fed Vice Chair Richard Clarida's remarks that conditions for a rate hike could be met in late 2022 and that the central bank could start scaling back on its asset purchase program this year.

Fed Governor Christopher Waller also saw the possibility of reducing accommodative policy sooner than some expected, given the progress in economic recovery and improving labour market.

Higher interest rates raise the opportunity cost of holding non-interest bearing gold.

The dollar index drifted higher, making gold less appealing for holders of other currencies.

The US non-farm payrolls report is due at 1230 GMT.

Indicative of sentiment, holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell to 1,027.61 tonnes on Thursday.

Silver fell 0.2% to $25.09 per ounce and was down about 1.5% for the week.

Platinum dropped 0.6% to $999.07 and was on track for its biggest weekly fall since June.

Palladium was flat at $2,649.71 and was headed for second week of declines.

Comments

Comments are closed.