AIRLINK 170.57 Decreased By ▼ -2.58 (-1.49%)
BOP 11.18 Increased By ▲ 0.53 (4.98%)
CNERGY 8.41 Decreased By ▼ -0.11 (-1.29%)
CPHL 99.73 Increased By ▲ 2.27 (2.33%)
FCCL 46.60 Decreased By ▼ -0.65 (-1.38%)
FFL 15.15 Decreased By ▼ -0.27 (-1.75%)
FLYNG 27.55 Decreased By ▼ -0.58 (-2.06%)
HUBC 137.78 Decreased By ▼ -1.13 (-0.81%)
HUMNL 12.92 Increased By ▲ 0.11 (0.86%)
KEL 4.54 No Change ▼ 0.00 (0%)
KOSM 5.36 Decreased By ▼ -0.19 (-3.42%)
MLCF 62.40 Increased By ▲ 0.14 (0.22%)
OGDC 212.16 Decreased By ▼ -2.59 (-1.21%)
PACE 5.42 Decreased By ▼ -0.13 (-2.34%)
PAEL 47.18 Increased By ▲ 2.32 (5.17%)
PIAHCLA 18.48 Decreased By ▼ -0.22 (-1.18%)
PIBTL 10.36 Decreased By ▼ -0.38 (-3.54%)
POWER 12.33 Increased By ▲ 0.07 (0.57%)
PPL 169.60 Decreased By ▼ -4.27 (-2.46%)
PRL 35.85 Decreased By ▼ -0.37 (-1.02%)
PTC 23.09 Decreased By ▼ -0.47 (-1.99%)
SEARL 96.26 Increased By ▲ 0.95 (1%)
SSGC 39.52 Increased By ▲ 0.39 (1%)
SYM 13.84 Decreased By ▼ -0.18 (-1.28%)
TELE 7.15 Decreased By ▼ -0.08 (-1.11%)
TPLP 10.03 Decreased By ▼ -0.26 (-2.53%)
TRG 63.48 Decreased By ▼ -1.20 (-1.86%)
WAVESAPP 9.99 Decreased By ▼ -0.05 (-0.5%)
WTL 1.31 Decreased By ▼ -0.02 (-1.5%)
YOUW 3.66 Decreased By ▼ -0.04 (-1.08%)
BR100 12,305 Decreased By -186.6 (-1.49%)
BR30 37,415 Decreased By -278.7 (-0.74%)
KSE100 114,853 Decreased By -1335.9 (-1.15%)
KSE30 35,217 Decreased By -533.1 (-1.49%)

NEW YORK: Gold prices hit a two-week high on Tuesday, underpinned by rising geopolitical tensions and expectations of a third US rate cut by the Federal Reserve next week, while the market’s gaze shifted to Wednesday’s US inflation data. Spot gold was up 1.1% to $2,687.69 per ounce at 9:35 am ET (1435 GMT). US gold futures were up 1% at $2,712.10.

“Concerns of heightened tensions in the Middle East are fostering safe haven bids,” said Peter Grant, vice president and senior metals strategist at Zaner Metals. There is “also a kind of renewed focus on the global easing trend - we’ll see the Bank of Canada cut rates, ECB and SNB later this week, and the Fed most likely next week.”

The spotlight is moving to the US Consumer Price Index (CPI) on Wednesday, which is expected to rise by 0.3% in November, according to a Reuters poll, and the Producer Price Index (PPI) on Thursday, both pivotal in shaping the Fed’s rate-cut decisions.

“The CPI data will have limited impact on gold, especially if we get a print around the expected figure. A hot CPI report will reduce the odds of rate cuts in early 2025 further,” said Fawad Razaqzada, market analyst at Forex.com. With two US rate cuts so far this year, traders predict an 86% chance of a further 25-basis-point cut at the Fed’s Dec. 17-18 meeting, according to the CME FedWatch tool.

Gold is considered a safe investment during economic and geopolitical turmoil and tends to thrive in a lower interest rate environment. Elsewhere, China will adopt an “appropriately loose” monetary policy and a more proactive fiscal approach next year, its Politburo was quoted as saying on Monday.

“Any big announcements should give gold a boost since China is the largest consumer nation, and especially ahead of the Lunar New Year celebrations when jewellery demand for gift-giving rises,” Razaqzada added. Spot silver added 0.6% to $32.00 per ounce, platinum fell 0.4% to $935.55 and palladium was down 0.6% at $968.00.

Comments

Comments are closed.