AIRLINK 58.23 Decreased By ▼ -0.37 (-0.63%)
BOP 6.24 Increased By ▲ 0.03 (0.48%)
CNERGY 3.97 Decreased By ▼ -0.02 (-0.5%)
DFML 16.07 Increased By ▲ 0.06 (0.37%)
DGKC 67.61 Increased By ▲ 0.29 (0.43%)
FCCL 17.82 Increased By ▲ 0.27 (1.54%)
FFBL 25.40 Decreased By ▼ -0.49 (-1.89%)
FFL 9.15 Increased By ▲ 0.01 (0.11%)
GGL 9.79 Increased By ▲ 0.02 (0.2%)
HBL 113.77 Increased By ▲ 1.27 (1.13%)
HUBC 111.61 Decreased By ▼ -3.68 (-3.19%)
HUMNL 6.55 Decreased By ▼ -0.04 (-0.61%)
KEL 4.39 Increased By ▲ 0.17 (4.03%)
KOSM 4.59 Increased By ▲ 1.03 (28.93%)
MLCF 37.73 Increased By ▲ 0.62 (1.67%)
OGDC 125.21 Increased By ▲ 8.81 (7.57%)
PAEL 22.61 Decreased By ▼ -0.10 (-0.44%)
PIAA 11.10 Increased By ▲ 0.31 (2.87%)
PIBTL 6.17 Decreased By ▼ -0.08 (-1.28%)
PPL 109.07 Increased By ▲ 5.07 (4.88%)
PRL 26.84 Increased By ▲ 0.45 (1.71%)
PTC 10.48 Increased By ▲ 0.95 (9.97%)
SEARL 52.85 Increased By ▲ 0.86 (1.65%)
SNGP 66.38 Increased By ▲ 1.26 (1.93%)
SSGC 11.01 Increased By ▲ 0.08 (0.73%)
TELE 7.13 Decreased By ▼ -0.08 (-1.11%)
TPLP 11.93 Decreased By ▼ -0.06 (-0.5%)
TRG 76.07 Decreased By ▼ -0.78 (-1.01%)
UNITY 20.47 Decreased By ▼ -0.02 (-0.1%)
WTL 1.30 No Change ▼ 0.00 (0%)
BR100 6,426 Increased By 94.3 (1.49%)
BR30 21,976 Increased By 345.9 (1.6%)
KSE100 62,816 Increased By 901.5 (1.46%)
KSE30 21,134 Increased By 282.7 (1.36%)

NEW YORK: Gold prices slipped on Thursday as the US Federal Reserve’s aggressive monetary policy tightening plan dimmed the metal’s appeal, with additional pressure from a rebound in equities.

Spot gold fell 0.18% to $1,849.52 per ounce by 2:12 p.m. ET (1812 GMT). US gold futures settled up 0.07% at $1,847.6. Minutes of the Fed’s May 3-4 policy meeting released on Wednesday highlighted most participants favouring additional 50 basis point rate hikes at the June and July meetings, although it was no surprise to the market.

“The minutes didn’t change anything. The market has started to realise the Fed will continue to take robust measures to control inflation,” said Bart Melek, head of commodity strategies at TD Securities. “The tightening story is not over by any stretch of the imagination, and it’s probably a very safe bet to say that the interest rate environment will continue to get more restrictive.”

The yellow metal is highly sensitive to interest rate hikes, as it increases the opportunity cost of holding non-yielding bullion. Gold prices are pressured in part by the stabilization of the US stock indexes this week, said Kitco senior analyst Jim Wycoff in a note.

US jobless claims fell last week, consistent with a labour market that remains tight amid strong demand for workers despite rising interest rates and tightening financial conditions.

Limiting the bullion’s fall, the US dollar hovered near one-month lows, while the US 10-year Treasury yield also fell to lowest since April.

“Gold seems to falter when it hits anything like a technical resistance and then you get long liquidation and profit taking. So this is the key issue for gold at the moment,” independent analyst Ross Norman said.

Comments

Comments are closed.