ANL 10.45 Decreased By ▼ -0.05 (-0.48%)
ASC 9.00 Decreased By ▼ -0.19 (-2.07%)
ASL 11.10 Decreased By ▼ -0.03 (-0.27%)
AVN 77.05 Increased By ▲ 0.70 (0.92%)
BOP 5.44 No Change ▼ 0.00 (0%)
CNERGY 5.26 Decreased By ▼ -0.01 (-0.19%)
FFL 6.60 Increased By ▲ 0.03 (0.46%)
FNEL 5.83 Decreased By ▼ -0.07 (-1.19%)
GGGL 10.99 Decreased By ▼ -0.09 (-0.81%)
GGL 16.44 No Change ▼ 0.00 (0%)
GTECH 8.74 Increased By ▲ 0.22 (2.58%)
HUMNL 6.89 No Change ▼ 0.00 (0%)
KEL 2.85 Decreased By ▼ -0.05 (-1.72%)
KOSM 3.20 No Change ▼ 0.00 (0%)
MLCF 26.70 Decreased By ▼ -0.21 (-0.78%)
PACE 3.00 No Change ▼ 0.00 (0%)
PIBTL 5.97 Increased By ▲ 0.06 (1.02%)
PRL 16.96 Increased By ▲ 0.07 (0.41%)
PTC 7.04 Increased By ▲ 0.07 (1%)
SILK 1.18 Increased By ▲ 0.01 (0.85%)
SNGP 36.40 Increased By ▲ 0.10 (0.28%)
TELE 10.74 Increased By ▲ 0.15 (1.42%)
TPL 9.05 Decreased By ▼ -0.08 (-0.88%)
TPLP 20.05 Increased By ▲ 0.14 (0.7%)
TREET 28.77 Increased By ▲ 0.17 (0.59%)
TRG 76.51 Increased By ▲ 0.21 (0.28%)
UNITY 19.90 Increased By ▲ 0.05 (0.25%)
WAVES 12.72 Increased By ▲ 0.06 (0.47%)
WTL 1.37 Increased By ▲ 0.01 (0.74%)
YOUW 5.10 Increased By ▲ 0.03 (0.59%)
BR100 4,073 Decreased By -18.3 (-0.45%)
BR30 14,972 Increased By 19.1 (0.13%)
KSE100 41,247 Decreased By -100.9 (-0.24%)
KSE30 15,696 Decreased By -41.1 (-0.26%)

Gold prices edged lower on Thursday as the dollar held firm, while investors were cautious ahead of a US payrolls report that is expected to provide clues on the Federal Reserve's tapering timeline.

Spot gold fell 0.2% to $1,758.93 per ounce by 0345 GMT, while US gold futures were down 0.2% at $1,758.70.

The US dollar held close to a one-year high, buoyed by inflation concerns and expectations that the Fed would have to act sooner to normalise policy.

Gold eases as dollar climbs, traders seek cue from jobs data

A stronger dollar makes gold less appealing for those holding other currencies.

"Central banks are in a very precarious situation as they watch inflation continue to pick up... Historically, it is good for gold, but it doesn't work that way in an environment where central banks are starting to shift into rate hike mode," said Stephen Innes, managing partner at SPI Asset Management.

"If we get a strong employment number and US yields move towards 1.6%, I think gold could trade down to $1,725."

Overnight, the yield on 10-year US Treasuries eased off a more than three-month high, but remained above 1.5%.

US nonfarm payrolls data, due on Friday, is expected to show an improvement in the labour market, which is likely to prompt the central bank to begin withdrawing pandemic-era support for the economy before year-end.

Expectations that the Fed would soon taper its massive bond purchases was bolstered by a strong private payrolls report for September released on Wednesday.

Reduced stimulus and higher interest rates lift bond yields, translating into increased opportunity costs of holding bullion that pays no interest.

Among other precious metals, spot silver fell 0.2% to $22.55 per ounce, platinum dropped 0.5% to $979.46, and palladium rose 1.1% to $1,910.38.

Comments

Comments are closed.