AVN 64.80 Increased By ▲ 0.63 (0.98%)
BAFL 30.90 Increased By ▲ 1.00 (3.34%)
BOP 4.73 Increased By ▲ 0.10 (2.16%)
CNERGY 3.87 Decreased By ▼ -0.02 (-0.51%)
DFML 13.44 Increased By ▲ 0.09 (0.67%)
DGKC 41.34 Increased By ▲ 0.49 (1.2%)
EPCL 46.23 Decreased By ▼ -0.77 (-1.64%)
FCCL 11.39 Increased By ▲ 0.39 (3.55%)
FFL 5.05 Decreased By ▼ -0.03 (-0.59%)
FLYNG 5.81 Increased By ▲ 0.04 (0.69%)
GGL 9.90 Increased By ▲ 0.15 (1.54%)
HUBC 64.06 Increased By ▲ 2.11 (3.41%)
HUMNL 5.67 Increased By ▲ 0.02 (0.35%)
KAPCO 27.83 Increased By ▲ 0.25 (0.91%)
KEL 2.13 Decreased By ▼ -0.02 (-0.93%)
LOTCHEM 24.35 Increased By ▲ 0.05 (0.21%)
MLCF 21.36 Increased By ▲ 0.64 (3.09%)
NETSOL 84.43 Increased By ▲ 1.33 (1.6%)
OGDC 87.80 Increased By ▲ 1.75 (2.03%)
PAEL 10.92 Increased By ▲ 0.12 (1.11%)
PIBTL 4.17 Increased By ▲ 0.03 (0.72%)
PPL 77.53 Increased By ▲ 1.34 (1.76%)
PRL 13.65 Decreased By ▼ -0.01 (-0.07%)
SILK 0.88 Decreased By ▼ -0.01 (-1.12%)
SNGP 41.75 Increased By ▲ 1.00 (2.45%)
TELE 5.89 Increased By ▲ 0.01 (0.17%)
TPLP 15.81 Increased By ▲ 0.16 (1.02%)
TRG 112.65 Increased By ▲ 2.55 (2.32%)
UNITY 13.97 Increased By ▲ 0.22 (1.6%)
WTL 1.14 Decreased By ▼ -0.01 (-0.87%)
BR100 4,048 Increased By 80.6 (2.03%)
BR30 14,467 Increased By 282.1 (1.99%)
KSE100 40,673 Increased By 801.8 (2.01%)
KSE30 15,190 Increased By 292.7 (1.96%)
Markets

Gold eases on dollar uptick, but ebbing taper bets cap losses

  • US producer prices rise by record in 12 months to July
  • Data shows drop in weekly US jobless claims
  • Receding economic risks curb bullion's appeal: analyst
Published August 12, 2021
Follow us

Gold prices slipped on Thursday, pressured by a firmer US dollar and US Treasury yields, but easing fears over early tapering of economic support by the Federal Reserve kept bullion close to the $1,750 mark.

Spot gold fell 0.2% to $1,748.10 per ounce by 10:24 a.m. EDT (1424 GMT). US gold futures dropped 0.2% to $1,749.70.

Gold leaped 1.3% on Wednesday after data showed US consumer price increases in July were in line with economists' estimates and down from June.

"The bulls have been able to stabilise gold prices after the recent sell-off and if prices can continue to trade sideways in the near-term, that would suggest that the recent spike lower is probably a near-term bottom," said Jim Wyckoff, senior analyst with Kitco Metals.

Dollar edges higher after US producer prices surge

But, taking some of gold's shine away, the dollar firmed 0.1% against rivals while benchmark US 10-year treasury yields rebounded on Thursday.

Market participants took stock of data that showed a drop in weekly jobless claims and US producer prices in the 12 months through July jumping by a record 7.8%.

Also on investors' radar was US President Joe Biden's $3.5 trillion budget proposals, which were passed in the Senate but faces a vote by the House of Representatives.

"Fiscal policies should work in tandem with monetary tapering to support gold because both suggest inflationary pressures ahead," Wyckoff said.

While gold is considered a hedge against higher inflation, it is highly sensitive to rising US interest rates that increase the opportunity cost of holding non-yielding bullion.

Gold's woes mount as dollar, yields rally on Fed taper bets

Julius Baer analyst Carsten Menke, however, said that "given receding economic risks, especially with higher vaccination rates, there's no reason to own gold".

Menke attributed the metal's recent gains to improved speculative interest in the futures market.

Elsewhere, silver fell 1.6% to $23.14 per ounce, platinum was up 0.1% at $1,018.1 and palladium dropped 0.4% to $2,624.74.

Comments

Comments are closed.

Gold eases on dollar uptick, but ebbing taper bets cap losses

Death toll in Peshawar mosque suicide blast rises to 100

After 29 successive losses, rupee sees some gain, settles at 267.89 against US dollar

Inflationary pressure expected to calm down gradually: Finance Division

KSE-100 jumps 800 points owing to optimism over IMF talks

Pakistan’s performance worsens, rank remains same in corruption perception index

Barrick Gold makes first payment of $3mn to Balochistan govt

Indus Motor to shut down plant for two weeks

Toshakhana case: Islamabad court decides to indict Imran Khan on February 7

Atlas Honda increases motorcycle prices in Pakistan by up to Rs30,000

Govt offers its SOE stakes to 2 UAE firms