AGL 39.18 Decreased By ▼ -0.82 (-2.05%)
AIRLINK 127.69 Decreased By ▼ -1.37 (-1.06%)
BOP 6.82 Increased By ▲ 0.07 (1.04%)
CNERGY 4.68 Increased By ▲ 0.19 (4.23%)
DCL 8.50 Decreased By ▼ -0.05 (-0.58%)
DFML 41.00 Increased By ▲ 0.18 (0.44%)
DGKC 82.15 Increased By ▲ 1.19 (1.47%)
FCCL 33.00 Increased By ▲ 0.23 (0.7%)
FFBL 73.91 Decreased By ▼ -0.52 (-0.7%)
FFL 11.84 Increased By ▲ 0.10 (0.85%)
HUBC 109.50 Decreased By ▼ -0.08 (-0.07%)
HUMNL 14.10 Increased By ▲ 0.35 (2.55%)
KEL 5.22 Decreased By ▼ -0.09 (-1.69%)
KOSM 7.54 Decreased By ▼ -0.18 (-2.33%)
MLCF 38.90 Increased By ▲ 0.30 (0.78%)
NBP 63.69 Increased By ▲ 0.18 (0.28%)
OGDC 192.70 Decreased By ▼ -1.99 (-1.02%)
PAEL 25.61 Decreased By ▼ -0.10 (-0.39%)
PIBTL 7.28 Decreased By ▼ -0.11 (-1.49%)
PPL 153.00 Decreased By ▼ -2.45 (-1.58%)
PRL 25.45 Decreased By ▼ -0.34 (-1.32%)
PTC 17.47 Decreased By ▼ -0.03 (-0.17%)
SEARL 82.30 Increased By ▲ 3.65 (4.64%)
TELE 7.55 Decreased By ▼ -0.31 (-3.94%)
TOMCL 33.34 Decreased By ▼ -0.39 (-1.16%)
TPLP 8.40 No Change ▼ 0.00 (0%)
TREET 16.35 Increased By ▲ 0.08 (0.49%)
TRG 56.50 Decreased By ▼ -1.72 (-2.95%)
UNITY 27.50 Increased By ▲ 0.01 (0.04%)
WTL 1.36 Decreased By ▼ -0.03 (-2.16%)
BR100 10,516 Increased By 70.9 (0.68%)
BR30 31,087 Decreased By -102.7 (-0.33%)
KSE100 98,146 Increased By 348.1 (0.36%)
KSE30 30,640 Increased By 159.1 (0.52%)
Markets

Gold scales over 1-week high as U.S. dollar, yields ease

  • Spot gold was up 0.8pc at $1,742.78 an ounce by 11:03 a.m. EDT (1503 GMT) after hitting its highest level since March 25 at $1,744.30. U.S. gold futures gained 1pc to $1,745.20.
Published April 7, 2021

Gold prices rose to their highest in more than a week on Tuesday, supported by a weaker dollar and as U.S. Treasury yields retreated.

Spot gold was up 0.8pc at $1,742.78 an ounce by 11:03 a.m. EDT (1503 GMT) after hitting its highest level since March 25 at $1,744.30. U.S. gold futures gained 1pc to $1,745.20.

As the yields fall, the reduced opportunity cost of being invested in bonds, along with a weaker dollar are likely primary reasons why gold is doing better, said Bart Melek, head of commodity strategies at TD Securities.

"Investors believe that we are not going to see another huge run-up in the yields and that has prompted gold to just technically rebound," Melek said.

The dollar fell 0.7pc against a basket of rivals, making gold cheaper for holders of other currencies, while benchmark U.S. Treasury yields drifted lower.

Wall Street's main indexes treaded water on Tuesday as investors stayed on the sidelines a day after the S&P 500 and the Dow closed at record highs on renewed recovery hopes, while data showed U.S. job openings increased more than expected in February.

"For the gold story to return to a firmer footing ... we need to see either some geopolitical concerns or inflation pick up more aggressively than the market has been pricing," said Saxo Bank analyst Ole Hansen.

Investors are also awaiting minutes on Wednesday from the Federal Reserve's last meeting for more cues on its monetary policy.

Cleveland Fed Bank President Loretta Mester on Monday said the U.S. economic outlook is brightening, though the U.S. central bank should stick to its easy policy to support growth further.

In other precious metals, silver rose 1.3pc to $25.21 an ounce, palladium added 0.8pc to $2,686.21 and platinum gained 2.5pc to $1,238.60.

Comments

Comments are closed.