AGL 8.30 Increased By ▲ 0.44 (5.6%)
ANL 10.59 Increased By ▲ 0.24 (2.32%)
AVN 78.60 Increased By ▲ 0.70 (0.9%)
BOP 5.45 Increased By ▲ 0.06 (1.11%)
CNERGY 5.59 Increased By ▲ 0.58 (11.58%)
EFERT 80.25 Decreased By ▼ -0.55 (-0.68%)
EPCL 69.60 Increased By ▲ 1.50 (2.2%)
FCCL 15.30 Increased By ▲ 0.74 (5.08%)
FFL 6.53 Increased By ▲ 0.33 (5.32%)
FLYNG 7.18 Increased By ▲ 0.53 (7.97%)
GGGL 10.85 Increased By ▲ 0.27 (2.55%)
GGL 16.79 Increased By ▲ 0.38 (2.32%)
GTECH 8.14 Increased By ▲ 0.02 (0.25%)
HUMNL 7.04 Increased By ▲ 0.02 (0.28%)
KEL 2.99 Increased By ▲ 0.11 (3.82%)
LOTCHEM 30.77 Increased By ▲ 2.24 (7.85%)
MLCF 28.98 Increased By ▲ 2.03 (7.53%)
OGDC 82.75 Increased By ▲ 0.60 (0.73%)
PAEL 16.97 Increased By ▲ 0.32 (1.92%)
PIBTL 6.08 Increased By ▲ 0.24 (4.11%)
PRL 18.10 Increased By ▲ 1.35 (8.06%)
SILK 1.15 Increased By ▲ 0.05 (4.55%)
TELE 11.25 Increased By ▲ 0.28 (2.55%)
TPL 9.20 Decreased By ▼ -0.02 (-0.22%)
TPLP 19.88 Increased By ▲ 0.22 (1.12%)
TREET 26.46 Increased By ▲ 0.55 (2.12%)
TRG 94.60 Increased By ▲ 0.99 (1.06%)
UNITY 19.50 Increased By ▲ 0.50 (2.63%)
WAVES 14.34 Increased By ▲ 0.78 (5.75%)
WTL 1.30 Increased By ▲ 0.06 (4.84%)
BR100 4,187 Increased By 80.1 (1.95%)
BR30 15,474 Increased By 343.5 (2.27%)
KSE100 42,096 Increased By 670.9 (1.62%)
KSE30 15,883 Increased By 222.7 (1.42%)

Gold prices fell to a 10-week low on Thursday, as an elevated US dollar hurt demand for greenback-priced bullion, while an impending Federal Reserve interest rate hike also dented the metal’s appeal as an inflation hedge.

Spot gold was down 0.5% at $1,877.18 per ounce, as of 0519 GMT, its lowest since February 16. US gold futures slipped 0.6% to $1,877.70.

Gold has been holding very well above $1,900, but has seen pressure from the dollar, and the underlying factor of the US Federal Reserve being expected to raise interest rates by 50 basis points next week, said Brian Lan, managing director at dealer GoldSilver Central.

The dollar index is at five-year highs and a further push above 103.82 would send it to levels not visited since late-2002.

A stronger dollar makes greenback-priced gold less attractive for other currency holders.

US MIDDAY: Gold firms

Benchmark 10-year US Treasury yields also firmed as investors awaited further clarity on the “restrictive” policy the Fed plans to pursue next week to combat inflation by curbing economic growth.

Gold is highly sensitive to rising US short-term interest rates and higher yields, which increase the opportunity cost of holding non-yielding bullion. However, gold is also seen as a safe store of value during economic and political crises.

With gold prices failing to push higher despite a backdrop of the Ukraine war and rapid inflation, investors have probably decided to look elsewhere, Lan said, adding that lockdowns in China to combat the spread of COVID-19 have impacted demand from the top consumer.

Spot silver dropped 0.8% to $23.09 per ounce, platinum eased 0.6% to $912.22, while palladium gained 1.5% to $2,234.98.

For gold, in the event of further downside, the next level on watch may be at $1,850, Yeap Jun Rong, a market strategist at IG, said in a note.

Comments

Comments are closed.