AGL 5.75 Decreased By ▼ -0.08 (-1.37%)
ANL 9.08 Increased By ▲ 0.05 (0.55%)
AVN 79.25 Increased By ▲ 0.45 (0.57%)
BOP 5.21 Increased By ▲ 0.05 (0.97%)
CNERGY 4.73 Increased By ▲ 0.05 (1.07%)
EFERT 81.22 Increased By ▲ 0.67 (0.83%)
EPCL 50.87 Decreased By ▼ -0.84 (-1.62%)
FCCL 13.51 Decreased By ▼ -0.10 (-0.73%)
FFL 5.82 Decreased By ▼ -0.03 (-0.51%)
FLYNG 7.25 Increased By ▲ 0.13 (1.83%)
FNEL 4.80 Decreased By ▼ -0.05 (-1.03%)
GGGL 8.90 No Change ▼ 0.00 (0%)
GGL 15.82 Decreased By ▼ -0.23 (-1.43%)
HUMNL 5.88 Increased By ▲ 0.08 (1.38%)
KEL 2.59 Decreased By ▼ -0.01 (-0.38%)
LOTCHEM 29.98 Decreased By ▼ -0.03 (-0.1%)
MLCF 25.28 Decreased By ▼ -0.12 (-0.47%)
OGDC 72.63 Increased By ▲ 0.48 (0.67%)
PAEL 15.43 Decreased By ▼ -0.06 (-0.39%)
PIBTL 5.13 Increased By ▲ 0.12 (2.4%)
PRL 16.48 Increased By ▲ 0.08 (0.49%)
SILK 1.09 Decreased By ▼ -0.01 (-0.91%)
TELE 9.53 Decreased By ▼ -0.12 (-1.24%)
TPL 7.40 Increased By ▲ 0.10 (1.37%)
TPLP 19.29 Increased By ▲ 0.06 (0.31%)
TREET 21.87 Decreased By ▼ -0.08 (-0.36%)
TRG 144.68 Decreased By ▼ -0.29 (-0.2%)
UNITY 17.56 Increased By ▲ 0.94 (5.66%)
WAVES 10.01 Increased By ▲ 0.01 (0.1%)
WTL 1.37 No Change ▼ 0.00 (0%)
BR100 4,258 Increased By 27.9 (0.66%)
BR30 15,841 Increased By 19.2 (0.12%)
KSE100 42,374 Increased By 302.3 (0.72%)
KSE30 15,665 Increased By 161 (1.04%)
Follow us

Gold prices on Wednesday lingered near their lowest level since April 2020, as investors prepared for the likelihood of another super-sized interest rate hike from the Federal Reserve in its effort to tackle inflation.

Spot gold was flat at $1,663.68 per ounce, as of 0324 GMT.

Earlier in the day, bullion hovered close to a 2-1/2-year low touched last week.US gold futures were also trading flat at $1,671.90.

The Fed will release its policy decision at 1800 GMT on Wednesday, followed by chair Jerome Powell’s press conference. Rate futures traders are pricing in an 81% chance of another 75 basis-point hike and a 19% probability of a 100 bps increase.

“The market wants the Fed to rip the bandaid off so it can have clarity as to the future state of rate decision making and the direction for the broader economic outlook,” said Michael Langford, director at corporate advisory firm AirGuide.

Gold retreats

“For gold presently the market is treading water until the Fed policy decision and then will likely respond with a heightened level of volatility before more likely re-trending positively as investors seek to put money to work.”

While gold is considered an inflation hedge, rising interest rates increase the opportunity cost of holding the non-yielding asset and bolsters the dollar, in which the bullion is priced.

The dollar index hovered close to a two-decade high marked earlier this month, while the benchmark 10-year Treasury yield held close to an over 11-year peak scaled on Tuesday.

Indicative of sentiment, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 4.63 tonnes on Tuesday, their biggest one-day outflow since July 18.

“It seems unlikely that gold ETF inflows will sustainably rebound until traders crystalize a turn in the Fed tightening cycle and/or there is consensus on a US/global recession,” analysts at Citi Research said in a note.

Spot silver edged 0.2% lower to $19.28 per ounce, platinum rose 0.3% to $925.31 and palladium fell 1.1% to $2,144.91.

Comments

Comments are closed.

Gold prices at 2-1/2-year low as traders brace for Fed outcome

Pakistan seeks support from Bank of China to bring back macroeconomic stability

Pakistan receives $500mn from AIIB: finance ministry

Gen Qamar Javed Bajwa hands over baton of command to Gen Asim Munir

Rupee remains stable at 223.95 against US dollar

ECP spokesperson sacked over statement regarding dissolution of assemblies

Hina Rabbani Khar meets interim Afghan government leadership on one-day Kabul trip

Oil jumps on hopes for easing of China’s COVID controls

Islamabad court extends Azam Swati’s remand for 4 days

KSE-100 stages turnaround, rises 0.72%

EPCL enters into interim agreement with SSGC for gas supply