AIRLINK 204.45 Increased By ▲ 3.55 (1.77%)
BOP 10.09 Decreased By ▼ -0.06 (-0.59%)
CNERGY 6.91 Increased By ▲ 0.03 (0.44%)
FCCL 34.83 Increased By ▲ 0.74 (2.17%)
FFL 17.21 Increased By ▲ 0.23 (1.35%)
FLYNG 24.52 Increased By ▲ 0.48 (2%)
HUBC 137.40 Increased By ▲ 5.70 (4.33%)
HUMNL 13.82 Increased By ▲ 0.06 (0.44%)
KEL 4.91 Increased By ▲ 0.10 (2.08%)
KOSM 6.70 No Change ▼ 0.00 (0%)
MLCF 44.31 Increased By ▲ 0.98 (2.26%)
OGDC 221.91 Increased By ▲ 3.16 (1.44%)
PACE 7.09 Increased By ▲ 0.11 (1.58%)
PAEL 42.97 Increased By ▲ 1.43 (3.44%)
PIAHCLA 17.08 Increased By ▲ 0.01 (0.06%)
PIBTL 8.59 Decreased By ▼ -0.06 (-0.69%)
POWER 9.02 Decreased By ▼ -0.09 (-0.99%)
PPL 190.60 Increased By ▲ 3.48 (1.86%)
PRL 43.04 Increased By ▲ 0.98 (2.33%)
PTC 25.04 Increased By ▲ 0.05 (0.2%)
SEARL 106.41 Increased By ▲ 6.11 (6.09%)
SILK 1.02 Increased By ▲ 0.01 (0.99%)
SSGC 42.91 Increased By ▲ 0.58 (1.37%)
SYM 18.31 Increased By ▲ 0.33 (1.84%)
TELE 9.14 Increased By ▲ 0.03 (0.33%)
TPLP 13.11 Increased By ▲ 0.18 (1.39%)
TRG 68.13 Decreased By ▼ -0.22 (-0.32%)
WAVESAPP 10.24 Decreased By ▼ -0.05 (-0.49%)
WTL 1.87 Increased By ▲ 0.01 (0.54%)
YOUW 4.09 Decreased By ▼ -0.04 (-0.97%)
BR100 12,137 Increased By 188.4 (1.58%)
BR30 37,146 Increased By 778.3 (2.14%)
KSE100 115,272 Increased By 1435.3 (1.26%)
KSE30 36,311 Increased By 549.3 (1.54%)
Markets

Gold reels to 4-month low on fears of early Fed tapering

  • Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell to 1,025.28 tonnes on Friday, from 1,027.61 tonnes on Thursday
Published August 9, 2021

Gold fell as much as 4.4% to a more than four-month low on Monday as robust US jobs data stoked concerns of a sooner-than-expected interest rate hike, which could increase the opportunity cost of holding non-interest bearing bullion.

Spot gold was down 1.4% at $1,738.53 per ounce by 0406 GMT, paring earlier losses. Prices touched $1,684.37, their lowest since March 31 earlier in the session, triggered by stop-loss selling.

US gold futures slipped 1.4% to $1,739.00.

Gold prices slightly changed

"Gold has failed to recapture the $1,750.00 level and the outlook remains bearish now," said Jeffrey Halley, senior market analyst for Asia Pacific at OANDA.

"Friday's non-farm payroll data and potentially the US infrastructure bill this week, have put Fed tapering before year-end firmly back on the table."

Data from the US Labor Department showed US employers hired the most workers in nearly a year in July and continued to raise wages.

That underscored remarks by Fed officials suggesting a sooner than anticipated roll-back of pandemic-era stimulus on the back of a solid labour market recovery.

The data helped lift the benchmark US 10-year Treasury yields, hurting gold's appeal as an inflation hedge.

Meanwhile, the dollar index hit a two-week high on Monday.

"Gold's metal will probably get tested into the CPI data this week," said Stephen Innes, a managing partner at SPI Asset Management, adding that a strong inflation number could increase the probability of an early interest rate hike.

Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell to 1,025.28 tonnes on Friday, from 1,027.61 tonnes on Thursday.

Silver slumped as much as 7.5% hitting a more than eight-month low of $22.50 per ounce earlier in the session. It was last down 1.9%.

Platinum fell 0.9% to $971.05, having earlier hit a low since November 2020 of $959.93. Palladium was flat at $2,626.56.

Comments

Comments are closed.