AGL 7.03 Increased By ▲ 0.41 (6.19%)
ANL 10.75 Increased By ▲ 0.34 (3.27%)
AVN 77.30 Increased By ▲ 0.40 (0.52%)
BOP 5.49 Increased By ▲ 0.05 (0.92%)
CNERGY 5.26 Increased By ▲ 0.01 (0.19%)
EFERT 88.50 Decreased By ▼ -0.32 (-0.36%)
EPCL 74.90 Decreased By ▼ -1.10 (-1.45%)
FCCL 13.65 Decreased By ▼ -0.10 (-0.73%)
FFL 6.62 Increased By ▲ 0.02 (0.3%)
FLYNG 7.19 Increased By ▲ 0.07 (0.98%)
GGGL 10.90 Decreased By ▼ -0.06 (-0.55%)
GGL 16.52 Increased By ▲ 0.04 (0.24%)
GTECH 8.69 Increased By ▲ 0.06 (0.7%)
HUMNL 6.94 Increased By ▲ 0.12 (1.76%)
KEL 2.86 No Change ▼ 0.00 (0%)
LOTCHEM 25.25 Increased By ▲ 0.22 (0.88%)
MLCF 25.79 Increased By ▲ 0.10 (0.39%)
OGDC 77.40 Increased By ▲ 0.36 (0.47%)
PAEL 15.62 No Change ▼ 0.00 (0%)
PIBTL 5.98 Increased By ▲ 0.03 (0.5%)
PRL 17.19 Decreased By ▼ -0.02 (-0.12%)
SILK 1.26 Increased By ▲ 0.03 (2.44%)
TELE 10.75 Increased By ▲ 0.02 (0.19%)
TPL 9.10 Increased By ▲ 0.07 (0.78%)
TPLP 19.85 Increased By ▲ 0.15 (0.76%)
TREET 28.78 Increased By ▲ 0.18 (0.63%)
TRG 77.01 Increased By ▲ 0.76 (1%)
UNITY 19.94 Increased By ▲ 0.06 (0.3%)
WAVES 12.65 Decreased By ▼ -0.15 (-1.17%)
WTL 1.38 Increased By ▲ 0.01 (0.73%)
BR100 4,072 Increased By 15.3 (0.38%)
BR30 14,890 Decreased By -16.8 (-0.11%)
KSE100 41,160 Increased By 57.2 (0.14%)
KSE30 15,660 Increased By 25.2 (0.16%)

Gold prices eased on Tuesday, hurt by an uptick in the dollar as investors await a policy meeting of the US central bank for clues to how it will fight growing inflationary pressures and worries over weaker economic growth.

Spot gold dipped 0.1% to $1,791.23 per ounce by 0406 GMT. US gold futures dropped 0.2% to $1,791.80.

The dollar index edged up 0.1% after declining 0.3% on Monday, making gold less appealing to buyers holding other currencies.

Stephen Innes, managing partner at SPI Asset Management, expects gold to remain pressured in an environment of central bank tightening, with the Fed most likely to announce the start of stimulus tapering in Wednesday's meeting.

Spot gold may retest $1,776, false break above trendline

Elevated price and wage increases may challenge the Fed as they try to strike a balance between containing inflation and supporting a recovery in jobs lost since the pandemic.

"But, provided US 10-year yields continue to trade around current levels, suggesting a weaker growth outlook in bondholders' minds, gold could remain supported," Innes added.

Benchmark 10-year yields have held above 1.5%, but retreated from the multi-month highs of around 1.7% hit last month.

Innes said central banks were unlikely to start an aggressive rate hike campaign given the weaker economic data such as the Institute for Supply Management (ISM) survey on Monday that showed US manufacturing activity had slowed last month.

Gold is often considered an inflation hedge, though reduced stimulus and interest rate hikes push government bond yields up, translating into a higher opportunity cost for holding bullion, which pays no interest.

Focus will also be on the Bank of England policy meeting due on Thursday, as investors weighed chances of a first interest rate hike by a major central bank since the start of the pandemic.

Spot silver eased 0.4% to $23.93 per ounce. Platinum fell 1.1% to $1,052.30 and palladium dropped 0.3% to $2,041.50.

Comments

Comments are closed.