AGL 40.00 Decreased By ▼ -0.16 (-0.4%)
AIRLINK 129.53 Decreased By ▼ -2.20 (-1.67%)
BOP 6.68 Decreased By ▼ -0.01 (-0.15%)
CNERGY 4.63 Increased By ▲ 0.16 (3.58%)
DCL 8.94 Increased By ▲ 0.12 (1.36%)
DFML 41.69 Increased By ▲ 1.08 (2.66%)
DGKC 83.77 Decreased By ▼ -0.31 (-0.37%)
FCCL 32.77 Increased By ▲ 0.43 (1.33%)
FFBL 75.47 Increased By ▲ 6.86 (10%)
FFL 11.47 Increased By ▲ 0.12 (1.06%)
HUBC 110.55 Decreased By ▼ -1.21 (-1.08%)
HUMNL 14.56 Increased By ▲ 0.25 (1.75%)
KEL 5.39 Increased By ▲ 0.17 (3.26%)
KOSM 8.40 Decreased By ▼ -0.58 (-6.46%)
MLCF 39.79 Increased By ▲ 0.36 (0.91%)
NBP 60.29 No Change ▼ 0.00 (0%)
OGDC 199.66 Increased By ▲ 4.72 (2.42%)
PAEL 26.65 Decreased By ▼ -0.04 (-0.15%)
PIBTL 7.66 Increased By ▲ 0.18 (2.41%)
PPL 157.92 Increased By ▲ 2.15 (1.38%)
PRL 26.73 Increased By ▲ 0.05 (0.19%)
PTC 18.46 Increased By ▲ 0.16 (0.87%)
SEARL 82.44 Decreased By ▼ -0.58 (-0.7%)
TELE 8.31 Increased By ▲ 0.08 (0.97%)
TOMCL 34.51 Decreased By ▼ -0.04 (-0.12%)
TPLP 9.06 Increased By ▲ 0.25 (2.84%)
TREET 17.47 Increased By ▲ 0.77 (4.61%)
TRG 61.32 Decreased By ▼ -1.13 (-1.81%)
UNITY 27.43 Decreased By ▼ -0.01 (-0.04%)
WTL 1.38 Increased By ▲ 0.10 (7.81%)
BR100 10,407 Increased By 220 (2.16%)
BR30 31,713 Increased By 377.1 (1.2%)
KSE100 97,328 Increased By 1781.9 (1.86%)
KSE30 30,192 Increased By 614.4 (2.08%)
Markets

Gold scales 8-week high as tighter lockdown measures loom

  • That means monetary policy needs to be loose and that kind of environment can still entice people to hold gold as an insurance asset in the portfolio," Schnider said.
Published January 4, 2021

Gold prices started the new year on a high by notching an eight-week peak after surpassing the key $1,900 level on Monday, as a surge in COVID-19 cases and prospects of tougher coronavirus control measures lured investors to the safe-haven metal.

Spot gold rose 1.1% to $1,919.07 per ounce by 0246 GMT, having hit its highest since Nov. 9 at $1,920.09, while US gold futures climbed 1.5% to $1,923.50.

A business survey on Monday showed that activity growth in China's vast industrial sector had slowed, raising doubts about swift global economic rebound.

Investors also looked forward to data from the United States and Europe that is due later in the day.

"Some potentially challenging macro data adds support for gold.

The December PMIs could show elemental weakness, given the fact that COVID-19 is still ravaging livelihoods in the United States and Europe," said Dominic Schnider, head of commodities and APAC forex at UBS Wealth Management in Hong Kong.

The dollar remained weaker against rivals, making gold cheaper for other currency holders, while Nikkei was off the 30-year high milestone as possible tightening in coronavirus emergency rules for Tokyo weighed on sentiment.

British Prime Minister Boris Johnson hinted at tougher lockdown restrictions, further lifting bullion's allure.

"A return to normal, thanks to the vaccines, at the earliest is in the second half of the year.

That means monetary policy needs to be loose and that kind of environment can still entice people to hold gold as an insurance asset in the portfolio," Schnider said.

Markets now await US Federal Reserve's minutes of the latest meeting on Wednesday for clues on policy outlook.

Silver gained 2.6% to $27.03 an ounce. Platinum rose 1.6% to $1,085.22 and palladium climbed 0.6% at $2,462.70.

Comments

Comments are closed.