AGL 5.51 Increased By ▲ 0.11 (2.04%)
ANL 8.49 Decreased By ▼ -0.30 (-3.41%)
AVN 75.73 Decreased By ▼ -0.43 (-0.56%)
BOP 5.21 Increased By ▲ 0.04 (0.77%)
CNERGY 4.42 Decreased By ▼ -0.06 (-1.34%)
EFERT 81.53 Increased By ▲ 0.43 (0.53%)
EPCL 49.54 Increased By ▲ 0.54 (1.1%)
FCCL 12.68 Decreased By ▼ -0.02 (-0.16%)
FFL 5.52 Decreased By ▼ -0.07 (-1.25%)
FLYNG 6.74 Decreased By ▼ -0.24 (-3.44%)
FNEL 4.64 Increased By ▲ 0.01 (0.22%)
GGGL 8.45 Decreased By ▼ -0.14 (-1.63%)
GGL 13.85 Decreased By ▼ -0.21 (-1.49%)
HUMNL 6.03 Increased By ▲ 0.53 (9.64%)
KEL 2.56 Decreased By ▼ -0.04 (-1.54%)
LOTCHEM 27.62 Decreased By ▼ -0.09 (-0.32%)
MLCF 23.75 Increased By ▲ 0.07 (0.3%)
OGDC 71.22 Decreased By ▼ -0.23 (-0.32%)
PAEL 15.16 Decreased By ▼ -0.04 (-0.26%)
PIBTL 4.87 Decreased By ▼ -0.04 (-0.81%)
PRL 15.86 Increased By ▲ 0.06 (0.38%)
SILK 1.09 Increased By ▲ 0.04 (3.81%)
TELE 8.84 Decreased By ▼ -0.15 (-1.67%)
TPL 7.08 Decreased By ▼ -0.08 (-1.12%)
TPLP 19.20 Decreased By ▼ -0.02 (-0.1%)
TREET 20.87 Decreased By ▼ -0.27 (-1.28%)
TRG 136.73 Decreased By ▼ -0.02 (-0.01%)
UNITY 16.54 Decreased By ▼ -0.26 (-1.55%)
WAVES 9.16 Increased By ▲ 0.06 (0.66%)
WTL 1.34 Decreased By ▼ -0.03 (-2.19%)
BR100 4,158 Decreased By -27.7 (-0.66%)
BR30 15,339 Decreased By -127.2 (-0.82%)
KSE100 41,652 Decreased By -167.7 (-0.4%)
KSE30 15,380 Decreased By -68.1 (-0.44%)
Follow us

Gold retreated over 1.5pc on Tuesday and is on course for its biggest intraday drop in a month, as a buoyant dollar and higher yields took the shine off the metal.

Spot gold dropped 1.6pc to $1,794.57 per ounce by 1:45 pm EDT (1745 GMT), and was set for its worst day since Aug. 9.

U.S. gold futures settled 1.9pc lower at $1,798.5 an ounce.

The dollar jumped 0.5pc against its rivals, making gold more expensive for holders of other currencies.

"The gold market is seeing some retracement," with the dollar likely to advance further and pressure the metals, said Daniel Pavilonis, senior market strategist at RJO Futures.

Gold scaled a 2-1/2 month peak on Friday after a surprisingly soft U.S. payrolls report boosted speculation that the U.S. Federal Reserve might push back the tapering of its bond purchases.

Spot gold may keep rising towards $1,856

But "the reality is they (Fed) want to start to taper it off, so the (gold) market is going to look to position itself ahead of it actually happening," Pavilonis added.

The Federal Open Market Committee is scheduled to next meet on September 21-22.

Gold is considered a hedge against inflation and currency debasement, which is caused by massive stimulus measures.

Further denting bullion's appeal, benchmark 10-year yields also rose to their highest since mid-July, increasing the opportunity cost of holding non-interest bearing bullion.

"In addition, the market is also starting to get a bit nervous because of another failed attempt to break above this key area of resistance around the $1,835 level," said Saxo Bank analyst Ole Hansen.

Investors are also looking at the European Central Bank's meeting on Thursday, where it is likely to debate winding back stimulus measures as the euro zone economy roars back to life.

Silver slid 1.4pc to $24.32 per ounce, platinum fell 2.2pc to $996.48. Palladium slipped 1.5pc to $2,373.68.

Comments

Comments are closed.

Gold hastens retreat as dollar gains upper hand

SBP-held foreign exchange reserves fall $784mn, now stand precariously at $6.71bn

IATA says Pakistan has blocked $225mn in airline funds from repatriation

Daily Mail apologises to PM Shehbaz over 'corruption allegations'

Saudi Arabia signs Huawei deal, deepening China ties on Xi visit

Rupee continues to depreciate, settles at 224.37 against US dollar

Roshan Digital Account: monthly inflow lowest since Dec 2020, clocks in at $141mn in Nov

Saif-ur-Rehman appointed Karachi administrator

IHC bars FIA from arresting Suleman Shehbaz upon return from UK

Pakistan seeking $4.2bn from Saudi Arabia: reports

Another audio, purportedly of Bushra Bibi discussing ‘sale of watches’, surfaces