ANL 10.41 Decreased By ▼ -0.09 (-0.86%)
ASC 9.01 Decreased By ▼ -0.18 (-1.96%)
ASL 11.07 Decreased By ▼ -0.06 (-0.54%)
AVN 76.90 Increased By ▲ 0.55 (0.72%)
BOP 5.44 No Change ▼ 0.00 (0%)
CNERGY 5.25 Decreased By ▼ -0.02 (-0.38%)
FFL 6.60 Increased By ▲ 0.03 (0.46%)
FNEL 5.85 Decreased By ▼ -0.05 (-0.85%)
GGGL 10.96 Decreased By ▼ -0.12 (-1.08%)
GGL 16.48 Increased By ▲ 0.04 (0.24%)
GTECH 8.63 Increased By ▲ 0.11 (1.29%)
HUMNL 6.82 Decreased By ▼ -0.07 (-1.02%)
KEL 2.86 Decreased By ▼ -0.04 (-1.38%)
KOSM 3.19 Decreased By ▼ -0.01 (-0.31%)
MLCF 25.69 Decreased By ▼ -1.22 (-4.53%)
PACE 2.95 Decreased By ▼ -0.05 (-1.67%)
PIBTL 5.95 Increased By ▲ 0.04 (0.68%)
PRL 17.21 Increased By ▲ 0.32 (1.89%)
PTC 6.97 No Change ▼ 0.00 (0%)
SILK 1.23 Increased By ▲ 0.06 (5.13%)
SNGP 36.41 Increased By ▲ 0.11 (0.3%)
TELE 10.73 Increased By ▲ 0.14 (1.32%)
TPL 9.03 Decreased By ▼ -0.10 (-1.1%)
TPLP 19.70 Decreased By ▼ -0.21 (-1.05%)
TREET 28.60 No Change ▼ 0.00 (0%)
TRG 76.25 Decreased By ▼ -0.05 (-0.07%)
UNITY 19.88 Increased By ▲ 0.03 (0.15%)
WAVES 12.80 Increased By ▲ 0.14 (1.11%)
WTL 1.37 Increased By ▲ 0.01 (0.74%)
YOUW 5.00 Decreased By ▼ -0.07 (-1.38%)
BR100 4,057 Decreased By -34.6 (-0.85%)
BR30 14,907 Decreased By -45.7 (-0.31%)
KSE100 41,103 Decreased By -245.6 (-0.59%)
KSE30 15,635 Decreased By -101.8 (-0.65%)

Gold inched up on Tuesday, after a spike in US bond yields spurred by bets of earlier-than-expected interest rate hikes by the Federal Reserve led to bullion's worst sell-off in six weeks in the previous session.

Spot gold was up 0.2% at $1,804.46 per ounce by 0345 GMT, after prices hit a more than one-month high of $1,831.62 on Monday before reversing course to close 1.5% lower. US gold futures were up 0.2% at $1,804.30.

"When you have this kind of a rise in yields that undermines the appeal of an anti-inflation hedge... (It's) really not surprising to see gold start weaker," said DailyFX currency strategist Ilya Spivak.

Towards 2021-end, interest rate expectations were rising, but inflation worries were building up even faster. So real interest rates were kept anchored and that gave gold some appeal as a store of inflation-adjusted value, he said.

Benchmark 10-year Treasury yields rose to a six-week high on Monday, with investors expecting the Fed to raise rates in March, soon after it completes tapering of its bond purchases. Higher yields raise the opportunity cost of holding non-interest paying gold.

The coronavirus Omicron variant appears to be far more contagious than previous iterations, but data suggests it may be less virulent than Delta, which led to various nations taking strict preventive measures.

A number of businesses, including several major US banks, have encouraged staff to work from home during the first few weeks of the year despite a US agency's approval for a third dose of vaccine for children.

Spot gold may stabilise around a support at $1,801 per ounce, and test a resistance at $1,815, according to Reuters' technical analyst Wang Tao.

Spot silver fell 0.4% to $22.77 an ounce, platinum was up 0.1% at $956.00, and palladium gained 1.2% to $1,847.69.

Comments

Comments are closed.