AIRLINK 58.38 Decreased By ▼ -0.22 (-0.38%)
BOP 6.20 Decreased By ▼ -0.01 (-0.16%)
CNERGY 3.96 Decreased By ▼ -0.03 (-0.75%)
DFML 16.20 Increased By ▲ 0.19 (1.19%)
DGKC 68.00 Increased By ▲ 0.68 (1.01%)
FCCL 17.77 Increased By ▲ 0.22 (1.25%)
FFBL 25.80 Decreased By ▼ -0.09 (-0.35%)
FFL 9.18 Increased By ▲ 0.04 (0.44%)
GGL 9.96 Increased By ▲ 0.19 (1.94%)
HBL 113.15 Increased By ▲ 0.65 (0.58%)
HUBC 111.29 Decreased By ▼ -4.00 (-3.47%)
HUMNL 6.72 Increased By ▲ 0.13 (1.97%)
KEL 4.19 Decreased By ▼ -0.03 (-0.71%)
KOSM 4.35 Increased By ▲ 0.79 (22.19%)
MLCF 37.58 Increased By ▲ 0.47 (1.27%)
OGDC 120.41 Increased By ▲ 4.01 (3.45%)
PAEL 22.71 No Change ▼ 0.00 (0%)
PIAA 10.82 Increased By ▲ 0.03 (0.28%)
PIBTL 6.20 Decreased By ▼ -0.05 (-0.8%)
PPL 106.70 Increased By ▲ 2.70 (2.6%)
PRL 26.68 Increased By ▲ 0.29 (1.1%)
PTC 9.50 Decreased By ▼ -0.03 (-0.31%)
SEARL 52.80 Increased By ▲ 0.81 (1.56%)
SNGP 66.00 Increased By ▲ 0.88 (1.35%)
SSGC 11.06 Increased By ▲ 0.13 (1.19%)
TELE 7.15 Decreased By ▼ -0.06 (-0.83%)
TPLP 11.99 No Change ▼ 0.00 (0%)
TRG 75.89 Decreased By ▼ -0.96 (-1.25%)
UNITY 20.44 Decreased By ▼ -0.05 (-0.24%)
WTL 1.29 Decreased By ▼ -0.01 (-0.77%)
BR100 6,366 Increased By 34.8 (0.55%)
BR30 21,680 Increased By 50.6 (0.23%)
KSE100 62,238 Increased By 324 (0.52%)
KSE30 20,923 Increased By 72.7 (0.35%)

Gold prices fell on Wednesday, pressured by a firmer dollar and rising US Treasury yields, while investors focused on US non-farm payrolls data that would be crucial to the Federal Reserve's schedule for tapering support.

Spot gold fell 0.4% to $1,753.23 per ounce by 0509 GMT, while US gold futures were 0.5% lower at $1,752.70.

While the dollar inched closer to its 2021 highs, denting gold's appeal for those holding other currencies, the benchmark US 10-year Treasury yield touched its highest since June.

Gold's price momentum is skewed downward on the basis of monetary policy expectations, IG Market analyst Kyle Rodda said.

Gold drops as rising U.S. yields, firm dollar dent appeal

"There's still significant signs of cost pressures in the global economy and that's going to keep the focus on central banks and tightening policy."

Gold is often viewed as an inflation hedge, but reduced central bank stimulus and interest rate hikes tend to push government bond yields up, translating into a higher opportunity cost for holding non-interest yielding bullion.

Focus is now on Friday's US payrolls data, which is expected to show 488,000 jobs were added in September.

"The upcoming nonfarm payroll report could be a game changer for gold prices, so prices will likely consolidate between the $1,745 and $1,775 range," Edward Moya, a senior market analyst at brokerage OANDA, said in a note.

"Once tapering is fully priced in, financial markets will grow fixated over the risks to the 2022 outlook and that will be the green light for many investors to return to bullion."

Chicago Fed President Charles Evans said on Tuesday he continued to believe supply bottlenecks were driving most of the recent increase in inflation and would subside. He also repeated that the central bank was close to begin reducing its monthly asset purchases.

Spot silver fell 1.1% to $22.41 per ounce, platinum slipped 1.3% to $948.98, and palladium was down 0.8% to $1,898.75.

Comments

Comments are closed.