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%)

NEW YORK: Gold hit a more than two-month high on Tuesday as geopolitical concerns over Ukraine pushed investors toward safe havens including bullion, ahead of the US Federal Reserve’s meet that could offer cues on its monetary policy tightening plan.

Spot gold rose 0.4% to $1,849.88 per ounce by 12:36 a.m. ET (1736 GMT), after hitting its highest since Nov. 19 at $1,852.65. US gold futures rose 0.4% to $1,849.40.

Russia said it was watching with great concern after the United States put 8,500 troops on alert to be ready to deploy in case of an escalation, while Britain urged its European allies to have sanctions ready to go if Russia invades Ukraine.

Gold is acting like a “flight to safety trade” in a wait-and-watch scenario until after the Fed announcement tomorrow, said Bob Haberkorn, senior market strategist at RJO Futures.

Investors await cues on how aggressive the Fed would be for the rest of the year and if it would signal more hikes to tackle inflation, Haberkorn added.

The Fed is expected to indicate it plans to raise rates in March and offer insights into how hawkish it intends to be. Although gold is considered a hedge against inflation and geopolitical risks, interest rate hikes would raise the opportunity cost of holding non-yielding bullion.

Gold also seemed to shake off pressure from inflows into rival safe-haven dollar which had touched a two-week peak. “Despite the Fed likely set to announce the start of a US rate hike cycle this week, gold keeps holding up well. Support for the yellow metal comes from high inflation and elevated market volatility,” UBS analyst Giovanni Staunovo said.

Comments

Comments are closed.