AGL 39.12 Decreased By ▼ -0.88 (-2.2%)
AIRLINK 128.50 Decreased By ▼ -0.56 (-0.43%)
BOP 6.79 Increased By ▲ 0.04 (0.59%)
CNERGY 4.68 Increased By ▲ 0.19 (4.23%)
DCL 8.49 Decreased By ▼ -0.06 (-0.7%)
DFML 41.01 Increased By ▲ 0.19 (0.47%)
DGKC 82.25 Increased By ▲ 1.29 (1.59%)
FCCL 33.11 Increased By ▲ 0.34 (1.04%)
FFBL 73.50 Decreased By ▼ -0.93 (-1.25%)
FFL 11.84 Increased By ▲ 0.10 (0.85%)
HUBC 109.40 Decreased By ▼ -0.18 (-0.16%)
HUMNL 14.25 Increased By ▲ 0.50 (3.64%)
KEL 5.23 Decreased By ▼ -0.08 (-1.51%)
KOSM 7.63 Decreased By ▼ -0.09 (-1.17%)
MLCF 39.11 Increased By ▲ 0.51 (1.32%)
NBP 63.70 Increased By ▲ 0.19 (0.3%)
OGDC 192.50 Decreased By ▼ -2.19 (-1.12%)
PAEL 25.60 Decreased By ▼ -0.11 (-0.43%)
PIBTL 7.32 Decreased By ▼ -0.07 (-0.95%)
PPL 153.35 Decreased By ▼ -2.10 (-1.35%)
PRL 25.38 Decreased By ▼ -0.41 (-1.59%)
PTC 17.26 Decreased By ▼ -0.24 (-1.37%)
SEARL 78.01 Decreased By ▼ -0.64 (-0.81%)
TELE 7.60 Decreased By ▼ -0.26 (-3.31%)
TOMCL 33.35 Decreased By ▼ -0.38 (-1.13%)
TPLP 8.31 Decreased By ▼ -0.09 (-1.07%)
TREET 16.40 Increased By ▲ 0.13 (0.8%)
TRG 56.52 Decreased By ▼ -1.70 (-2.92%)
UNITY 27.50 Increased By ▲ 0.01 (0.04%)
WTL 1.38 Decreased By ▼ -0.01 (-0.72%)
BR100 10,475 Increased By 30.2 (0.29%)
BR30 31,004 Decreased By -185.9 (-0.6%)
KSE100 98,116 Increased By 317.9 (0.33%)
KSE30 30,611 Increased By 130.8 (0.43%)

NEW YORK: Gold prices edged higher on Thursday as investors adopted a cautious stance ahead of remarks from Federal Reserve Chair Jerome Powell that might provide further clarity on a recent spike in US Treasury yields.

Spot gold was up 0.2% at $1,714.61 per ounce by 09:50 ET (1450 GMT), having dropped on Wednesday to its lowest since June 9 at $1,701.40.

US gold futures eased 0.3% to $1,711.40.

“The market continues to be quite concerned about higher yields, and we are waiting for Jerome Powell speech,” said Bart Melek, head of commodity strategies at TD Securities.

“In many ways that’ll (Powell’s remarks) give us a bit of certainty which way to go, mainly because the big criticism the market has is that the central bank is not really telling us if they are categorically committed to keeping real rates as low as they can be.”

Powell is due to speak at a Wall Street Journal conference at 12:05 p.m. ET (1705 GMT), with markets watching for any hints of concern about last week’s jump in bond yields.

The recent rise in US bond yields have eroded gold’s appeal as an inflation hedge by increasing the opportunity cost of holding non-yielding bullion. Gold is down more than 9% so far this year.

“It is the ten-year yield that’s driving gold at the moment and we would argue that the market is taking too short-term a view and that the excess liquidity in the system remains medium-term supportive,” said StoneX analyst Rhona O’Connell in a note.

The US Senate is expected to begin debating President Joe Biden’s $1.9 trillion coronavirus relief package on Thursday after agreeing to phase out payments to higher-income Americans.

Meanwhile, data showed the number of Americans filing for jobless benefits rose last week.

Silver fell 0.3% to $25.99 per ounce, while palladium rose 0.3% to $2,361.26. Platinum was steady at 1,166.81 per ounce.

Comments

Comments are closed.