AIRLINK 63.43 Increased By ▲ 0.23 (0.36%)
BOP 5.46 Increased By ▲ 0.06 (1.11%)
CNERGY 4.68 Increased By ▲ 0.11 (2.41%)
DFML 19.02 Decreased By ▼ -0.71 (-3.6%)
DGKC 70.29 Increased By ▲ 1.29 (1.87%)
FCCL 19.12 Increased By ▲ 0.87 (4.77%)
FFBL 30.86 Increased By ▲ 1.47 (5%)
FFL 9.58 Increased By ▲ 0.27 (2.9%)
GGL 10.16 No Change ▼ 0.00 (0%)
HBL 109.20 Decreased By ▼ -0.86 (-0.78%)
HUBC 127.70 Increased By ▲ 1.69 (1.34%)
HUMNL 6.85 Increased By ▲ 0.12 (1.78%)
KEL 4.39 Decreased By ▼ -0.08 (-1.79%)
KOSM 4.43 Decreased By ▼ -0.02 (-0.45%)
MLCF 37.39 Increased By ▲ 0.79 (2.16%)
OGDC 128.50 Increased By ▲ 0.20 (0.16%)
PAEL 22.80 Decreased By ▼ -0.39 (-1.68%)
PIAA 26.50 Increased By ▲ 0.30 (1.15%)
PIBTL 6.19 Increased By ▲ 0.19 (3.17%)
PPL 112.52 Decreased By ▼ -0.28 (-0.25%)
PRL 26.85 Decreased By ▼ -0.30 (-1.1%)
PTC 16.75 Decreased By ▼ -0.34 (-1.99%)
SEARL 60.72 Decreased By ▼ -1.37 (-2.21%)
SNGP 65.35 Increased By ▲ 1.40 (2.19%)
SSGC 11.05 Increased By ▲ 0.02 (0.18%)
TELE 9.10 Decreased By ▼ -0.13 (-1.41%)
TPLP 11.28 Increased By ▲ 0.28 (2.55%)
TRG 69.85 Decreased By ▼ -1.10 (-1.55%)
UNITY 23.65 Decreased By ▼ -0.30 (-1.25%)
WTL 1.31 Decreased By ▼ -0.07 (-5.07%)
BR100 7,280 Increased By 64.2 (0.89%)
BR30 23,637 Increased By 105.1 (0.45%)
KSE100 70,315 Increased By 694.7 (1%)
KSE30 23,132 Increased By 221.5 (0.97%)

Gold prices eased on Tuesday as the dollar benefited from elevated bond yields and China’s economic concerns, with markets now looking ahead to US retail sales data that could shed light on the impact of higher rates on consumer spending.

Spot gold was down 0.2% at $1,905 per ounce by 0319 GMT, trading near its lowest level in 1-1/2 months hit in the previous session.

US gold futures dropped 0.3% to $1,937.80. Gold prices fell as the US dollar and Treasury yields were pushed higher, with investors assessing potential policy actions from Chinese regulators to address mounting financial and property risk, according to NAB Commodities Research.

Making bullion expensive for overseas buyers, the US dollar hit its highest levels in more than a month on Monday amid worries over China’s economy. US 10-year Treasury yields were near their highest levels since November.

Higher dollar, yields drag gold to more than one-month low

China’s central bank unexpectedly cut key policy rates on Tuesday, as the world’s second-biggest economy’s industrial output and retail sales growth slowed and undershot forecasts.

Attention is now turning to US retail sales data due later in the day and the Federal Reserve’s July policy meeting minutes on Wednesday.

Sabrin Chowdhury, head of commodities at BMI, expects a boost in gold prices, lately under pressure from a strong US dollar, only towards the last quarter of 2023.

“While the US Fed’s hiking cycle has reached its apex with the hike in July 2023… we expect a dovish pivot to only appear from 2024 onwards.”

Treasury Secretary Janet Yellen said President Joe Biden’s policies are powering historic job growth and rebuilding competitiveness, despite polls showing Americans remain sceptical.

Highlighting investor sentiment toward bullion, the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings fell 0.4% to their lowest since January 2020 on Monday.

Spot silver was up 0.1% to $22.63 an ounce and platinum fell 0.3% to $898.94. Palladium slid 0.5% to $1,262.76.

Comments

Comments are closed.