AIRLINK 62.48 Increased By ▲ 2.05 (3.39%)
BOP 5.36 Increased By ▲ 0.01 (0.19%)
CNERGY 4.58 Decreased By ▼ -0.02 (-0.43%)
DFML 15.50 Increased By ▲ 0.66 (4.45%)
DGKC 66.40 Increased By ▲ 1.60 (2.47%)
FCCL 17.59 Increased By ▲ 0.73 (4.33%)
FFBL 27.70 Increased By ▲ 2.95 (11.92%)
FFL 9.27 Increased By ▲ 0.21 (2.32%)
GGL 10.06 Increased By ▲ 0.10 (1%)
HBL 105.70 Increased By ▲ 1.49 (1.43%)
HUBC 122.30 Increased By ▲ 4.78 (4.07%)
HUMNL 6.60 Increased By ▲ 0.06 (0.92%)
KEL 4.50 Decreased By ▼ -0.05 (-1.1%)
KOSM 4.48 Decreased By ▼ -0.09 (-1.97%)
MLCF 36.20 Increased By ▲ 0.79 (2.23%)
OGDC 122.92 Increased By ▲ 0.53 (0.43%)
PAEL 23.00 Increased By ▲ 1.09 (4.97%)
PIAA 29.34 Increased By ▲ 2.05 (7.51%)
PIBTL 5.80 Decreased By ▼ -0.14 (-2.36%)
PPL 107.50 Increased By ▲ 0.13 (0.12%)
PRL 27.25 Increased By ▲ 0.74 (2.79%)
PTC 18.07 Increased By ▲ 1.97 (12.24%)
SEARL 53.00 Decreased By ▼ -0.63 (-1.17%)
SNGP 63.21 Increased By ▲ 2.01 (3.28%)
SSGC 10.80 Increased By ▲ 0.05 (0.47%)
TELE 9.20 Increased By ▲ 0.71 (8.36%)
TPLP 11.44 Increased By ▲ 0.86 (8.13%)
TRG 70.86 Increased By ▲ 0.95 (1.36%)
UNITY 23.62 Increased By ▲ 0.11 (0.47%)
WTL 1.28 No Change ▼ 0.00 (0%)
BR100 6,941 Increased By 63.6 (0.92%)
BR30 22,802 Increased By 233 (1.03%)
KSE100 67,142 Increased By 594.3 (0.89%)
KSE30 22,090 Increased By 175.1 (0.8%)

Gold's slight rebound on Friday from a sharp selloff in the previous session lost steam as the dollar gained, putting it on course for a second weekly dip with investors focused on the U.S. Federal Reserve's tapering strategy.

Spot gold was down 0.1pc at $1,751.29 per ounce by 1:31 pm EDT (1731 GMT). U.S. gold futures settled 0.3pc lower at $1,751.4.

A surprise gain in August U.S. retail sales earlier in the week rekindled early Fed tapering fears, boosting the dollar and driving a nearly 3pc drop in gold on Thursday.

The market already believes the Fed will cut back on bond purchases, and that would drive U.S. Treasury yields higher, said Daniel Pavilonis, senior market strategist at RJO Futures.

"This does not bode well for gold, it's most likely going to come back down," Pavilonis said.

He added the dollar, rather than gold, was benefiting from safe-haven demand from developments in China surrounding property developer Evergrande.

Spot gold may keep rising towards $1,856

The dollar climbed to a three-week peak, making gold more expensive for other currency holders, while benchmark Treasury yields also gained.

"Gold has been a frustrating, mean-reverting product most of the time," a NY-based trader said, adding that it was likely to be hemmed in the $1,750-80 range going into the Fed meeting.

The Fed's policy-setting committee will meet on Tuesday and Wednesday.

A strong hawkish shift could prompt another knee-jerk, downward reaction in gold even if it has been priced in already, said StoneX analyst Rhona O'Connell.

Unwinding of economic support measures not only dim gold's status as a safe haven, but any subsequent increase in interest rates would translate to the higher opportunity cost of holding non-yielding assets like bullion.

Silver slipped 2.4pc at $22.37 per ounce, after hitting its lowest level since end-November 2020, putting it on track for its worst week since mid-June.

Platinum rose 0.5pc to $937.67, while palladium fell 1.4pc to $2,004.46.

Comments

Comments are closed.