AIRLINK 196.38 Increased By ▲ 4.54 (2.37%)
BOP 10.11 Increased By ▲ 0.24 (2.43%)
CNERGY 7.75 Increased By ▲ 0.08 (1.04%)
FCCL 38.10 Increased By ▲ 0.24 (0.63%)
FFL 15.74 Decreased By ▼ -0.02 (-0.13%)
FLYNG 24.54 Decreased By ▼ -0.77 (-3.04%)
HUBC 130.38 Increased By ▲ 0.21 (0.16%)
HUMNL 13.73 Increased By ▲ 0.14 (1.03%)
KEL 4.60 Decreased By ▼ -0.07 (-1.5%)
KOSM 6.19 Decreased By ▼ -0.02 (-0.32%)
MLCF 44.85 Increased By ▲ 0.56 (1.26%)
OGDC 206.51 Decreased By ▼ -0.36 (-0.17%)
PACE 6.58 Increased By ▲ 0.02 (0.3%)
PAEL 39.77 Decreased By ▼ -0.78 (-1.92%)
PIAHCLA 17.20 Decreased By ▼ -0.39 (-2.22%)
PIBTL 7.99 Decreased By ▼ -0.08 (-0.99%)
POWER 9.20 Decreased By ▼ -0.04 (-0.43%)
PPL 178.91 Increased By ▲ 0.35 (0.2%)
PRL 38.93 Decreased By ▼ -0.15 (-0.38%)
PTC 24.31 Increased By ▲ 0.17 (0.7%)
SEARL 109.27 Increased By ▲ 1.42 (1.32%)
SILK 1.00 Increased By ▲ 0.03 (3.09%)
SSGC 37.75 Decreased By ▼ -1.36 (-3.48%)
SYM 18.83 Decreased By ▼ -0.29 (-1.52%)
TELE 8.53 Decreased By ▼ -0.07 (-0.81%)
TPLP 12.14 Decreased By ▼ -0.23 (-1.86%)
TRG 64.76 Decreased By ▼ -1.25 (-1.89%)
WAVESAPP 12.11 Decreased By ▼ -0.67 (-5.24%)
WTL 1.64 Decreased By ▼ -0.06 (-3.53%)
YOUW 3.87 Decreased By ▼ -0.08 (-2.03%)
BR100 12,000 Increased By 69.2 (0.58%)
BR30 35,548 Decreased By -112 (-0.31%)
KSE100 114,256 Increased By 1049.3 (0.93%)
KSE30 35,870 Increased By 304.3 (0.86%)

Gold prices edged lower on Monday as increasing expectations that the US Federal Reserve will not aggressively cut interest rates later this month boosted the dollar, making gold expensive for holders of other currencies. Spot gold fell 0.2% to $1,396.56 per ounce at 01:44 pm. EDT (1744 GMT). US gold futures settled at $1,400 per ounce.
"With the strong jobs report the bets on 50 basis point rate cuts have dropped from almost 30% to 2%. The fact is that the runaway projections of interest rate declines are not going to happen and that's what is hurting gold," INTL FCStone analyst Edward Meir said. Stronger than expected jobs data reported on Friday reduced the likelihood of a steep rate cut at the Fed's July 30-31 meeting and lifted the dollar to three-week highs.
However, the central bank was still expected to cut rates by a quarter point, given modest wage gains and other economic data suggesting the US economy was losing steam. Markets are now looking ahead to Fed Chairman Jerome Powell's semi-annual testimony to the US Congress on the economy this week for clues on the near-term outlook for monetary policy.
Gold hit $1,438.63 for the first time in six years last month and has been trading above key technical levels, supported by expectations of a rate cut by major central banks and lingering concerns about the global economy. "Continuing tensions with Iran and headlines about central banks around the world being strong buyers of the yellow metal are supporting prices," said David Meger, director of metals trading at High Ridge Futures.
The Chinese central bank increased its gold reserves for a seventh straight month in June, data showed. China is the world's biggest consumer of the yellow metal. Adding to existing tensions between the United States and Iran, Tehran said on Sunday it will shortly boost its uranium enrichment above a cap set by a landmark 2015 nuclear deal, prompting a warning "to be careful" from US President Donald Trump.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.18% to 796.97 tonnes on Friday from 798.44 tonnes on Wednesday. Among other precious metals, silver gained 0.4% to $15.03 per ounce, while palladium dipped 0.4 % to $1,560 per ounce and platinum rose 1.6% to $817 per ounce.

Copyright Reuters, 2019

Comments

Comments are closed.