AGL 38.50 Increased By ▲ 0.93 (2.48%)
AIRLINK 132.00 Decreased By ▼ -0.50 (-0.38%)
BOP 5.60 Decreased By ▼ -0.04 (-0.71%)
CNERGY 3.84 Increased By ▲ 0.07 (1.86%)
DCL 8.67 Decreased By ▼ -0.20 (-2.25%)
DFML 40.80 Decreased By ▼ -0.20 (-0.49%)
DGKC 88.71 Decreased By ▼ -1.45 (-1.61%)
FCCL 35.20 Increased By ▲ 0.12 (0.34%)
FFBL 66.49 Decreased By ▼ -0.01 (-0.02%)
FFL 10.47 Increased By ▲ 0.32 (3.15%)
HUBC 109.50 Increased By ▲ 3.10 (2.91%)
HUMNL 14.66 Increased By ▲ 1.26 (9.4%)
KEL 4.81 Decreased By ▼ -0.05 (-1.03%)
KOSM 7.07 Increased By ▲ 0.22 (3.21%)
MLCF 42.50 Increased By ▲ 0.70 (1.67%)
NBP 59.47 Increased By ▲ 0.89 (1.52%)
OGDC 184.00 Increased By ▲ 2.75 (1.52%)
PAEL 25.60 Decreased By ▼ -0.10 (-0.39%)
PIBTL 5.90 Increased By ▲ 0.07 (1.2%)
PPL 147.50 Decreased By ▼ -0.90 (-0.61%)
PRL 23.51 Increased By ▲ 0.29 (1.25%)
PTC 16.45 Increased By ▲ 1.21 (7.94%)
SEARL 69.28 Increased By ▲ 0.49 (0.71%)
TELE 7.25 Increased By ▲ 0.01 (0.14%)
TOMCL 35.80 Decreased By ▼ -0.20 (-0.56%)
TPLP 7.55 Increased By ▲ 0.15 (2.03%)
TREET 14.19 Decreased By ▼ -0.05 (-0.35%)
TRG 50.80 Decreased By ▼ -0.05 (-0.1%)
UNITY 26.83 Increased By ▲ 0.43 (1.63%)
WTL 1.22 Increased By ▲ 0.01 (0.83%)
BR100 9,820 Increased By 52.7 (0.54%)
BR30 29,792 Increased By 391.6 (1.33%)
KSE100 92,373 Increased By 435.5 (0.47%)
KSE30 28,829 Increased By 85.3 (0.3%)
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.