AIRLINK 193.75 Increased By ▲ 0.25 (0.13%)
BOP 9.75 Increased By ▲ 0.11 (1.14%)
CNERGY 7.59 Increased By ▲ 0.06 (0.8%)
FCCL 37.60 Decreased By ▼ -0.10 (-0.27%)
FFL 15.62 Increased By ▲ 0.02 (0.13%)
FLYNG 25.88 Increased By ▲ 0.29 (1.13%)
HUBC 128.50 Increased By ▲ 1.43 (1.13%)
HUMNL 13.51 Increased By ▲ 0.01 (0.07%)
KEL 4.57 Decreased By ▼ -0.01 (-0.22%)
KOSM 6.25 Increased By ▲ 0.15 (2.46%)
MLCF 44.14 Increased By ▲ 0.18 (0.41%)
OGDC 205.39 Increased By ▲ 2.15 (1.06%)
PACE 6.43 Increased By ▲ 0.03 (0.47%)
PAEL 40.72 Decreased By ▼ -0.26 (-0.63%)
PIAHCLA 17.40 Decreased By ▼ -0.09 (-0.51%)
PIBTL 7.80 Increased By ▲ 0.14 (1.83%)
POWER 9.15 Increased By ▲ 0.07 (0.77%)
PPL 176.12 Increased By ▲ 1.87 (1.07%)
PRL 38.31 Increased By ▲ 0.24 (0.63%)
PTC 24.56 Increased By ▲ 0.49 (2.04%)
SEARL 107.42 Increased By ▲ 0.18 (0.17%)
SILK 0.99 Increased By ▲ 0.02 (2.06%)
SSGC 37.06 Increased By ▲ 0.66 (1.81%)
SYM 18.93 Decreased By ▼ -0.11 (-0.58%)
TELE 8.41 Increased By ▲ 0.17 (2.06%)
TPLP 12.00 Increased By ▲ 0.22 (1.87%)
TRG 66.10 Increased By ▲ 1.22 (1.88%)
WAVESAPP 11.81 Increased By ▲ 0.18 (1.55%)
WTL 1.69 Increased By ▲ 0.01 (0.6%)
YOUW 3.95 Increased By ▲ 0.10 (2.6%)
BR100 11,847 Increased By 78.7 (0.67%)
BR30 35,277 Increased By 313.3 (0.9%)
KSE100 112,357 Increased By 869.2 (0.78%)
KSE30 35,220 Increased By 285.6 (0.82%)

Gold prices were steady on Friday, as bullion's appeal as an inflation hedge was partially capped by hawkish comments from a US Federal Reserve official that ramped up odds for a hefty interest rate hike next month and also lifted Treasury yields.

Spot gold held its ground at $1,825.62 per ounce, as of 0328 GMT, while US gold futures fell 0.6% to $1,826.40.

Gold gained 1% so far this week, the highest since early January, as inflationary risks and geopolitical tensions lifted demand for the safe-haven asset.

US consumer prices rose solidly in January, leading to the biggest annual increase in inflation in 40 years, fuelling speculation for a 50-basis-point rate hike from the Fed in March.

Spot gold may test resistance at $1,836

Gold is holding up quite well, said IG Markets analyst Kyle Rodda, adding that "if rate markets continue to price the sort of hawkishness from the Fed - that was roughly articulated by Jim Bullard last night - the fundamentals necessitate a much lower gold price."

Rate futures showed a nearly 68% chance that the Fed will aggressively raise interest rates in March.

Benchmark 10-year US Treasury yields hovered close to their highest level since Aug. 2019 touched on Thursday.

Higher yields and interest rate hikes dent the appeal of bullion by raising the opportunity cost of holding non-interest-paying gold.

Russia and Ukraine said they had failed to reach any breakthrough in a day of talks with French and German officials, while Britain said the "most dangerous moment" in the West's standoff with Moscow appeared imminent, as Russia held military exercises in Belarus.

Among other metals, spot silver fell 0.3% to $23.10 per ounce, but is still up about 2.7% for the week.

Platinum was down 0.4% at $1,022.03, and palladium dropped 0.9% to $2,235.52, set for a second weekly loss.

Comments

Comments are closed.