AGL 40.00 No Change ▼ 0.00 (0%)
AIRLINK 129.06 Decreased By ▼ -0.47 (-0.36%)
BOP 6.75 Increased By ▲ 0.07 (1.05%)
CNERGY 4.49 Decreased By ▼ -0.14 (-3.02%)
DCL 8.55 Decreased By ▼ -0.39 (-4.36%)
DFML 40.82 Decreased By ▼ -0.87 (-2.09%)
DGKC 80.96 Decreased By ▼ -2.81 (-3.35%)
FCCL 32.77 No Change ▼ 0.00 (0%)
FFBL 74.43 Decreased By ▼ -1.04 (-1.38%)
FFL 11.74 Increased By ▲ 0.27 (2.35%)
HUBC 109.58 Decreased By ▼ -0.97 (-0.88%)
HUMNL 13.75 Decreased By ▼ -0.81 (-5.56%)
KEL 5.31 Decreased By ▼ -0.08 (-1.48%)
KOSM 7.72 Decreased By ▼ -0.68 (-8.1%)
MLCF 38.60 Decreased By ▼ -1.19 (-2.99%)
NBP 63.51 Increased By ▲ 3.22 (5.34%)
OGDC 194.69 Decreased By ▼ -4.97 (-2.49%)
PAEL 25.71 Decreased By ▼ -0.94 (-3.53%)
PIBTL 7.39 Decreased By ▼ -0.27 (-3.52%)
PPL 155.45 Decreased By ▼ -2.47 (-1.56%)
PRL 25.79 Decreased By ▼ -0.94 (-3.52%)
PTC 17.50 Decreased By ▼ -0.96 (-5.2%)
SEARL 78.65 Decreased By ▼ -3.79 (-4.6%)
TELE 7.86 Decreased By ▼ -0.45 (-5.42%)
TOMCL 33.73 Decreased By ▼ -0.78 (-2.26%)
TPLP 8.40 Decreased By ▼ -0.66 (-7.28%)
TREET 16.27 Decreased By ▼ -1.20 (-6.87%)
TRG 58.22 Decreased By ▼ -3.10 (-5.06%)
UNITY 27.49 Increased By ▲ 0.06 (0.22%)
WTL 1.39 Increased By ▲ 0.01 (0.72%)
BR100 10,445 Increased By 38.5 (0.37%)
BR30 31,189 Decreased By -523.9 (-1.65%)
KSE100 97,798 Increased By 469.8 (0.48%)
KSE30 30,481 Increased By 288.3 (0.95%)
Markets

Gold gains as US stimulus prospects offset firm dollar

  • "Our market view remain bullish for the long term as the US dollar is expected to remain structurally weak in the long term."
Published January 18, 2021

Gold prices rose on Monday, after hitting a 1-1/2-month low earlier in the session, as prospects of a massive US coronavirus relief aid outweighed a stronger dollar and lifted bullion's appeal as an inflation hedge.

Spot gold rose 0.5% to $1,836.29 per ounce by 0728 GMT, after falling to $1,809.90, its lowest since Dec. 2.

US gold futures gained 0.4% to $1,836.80. "The gold market remains relatively supported at these levels, as the current run of the US dollar has more to do with safe haven, rather than a discernible pivot to a stronger dollar," said Stephen Innes, chief global market strategist at Axi.

"The US stimulus (plan) is quite large, we're going to get around $1.9 trillion or $1.5 trillion, and either scenario is good for gold," Innes said.

The US dollar hit a four-week peak against rival currencies, making gold expensive for holders of other currencies.

US President-elect Joe Biden last week unveiled a $1.9 trillion stimulus package proposal to jump-start the economy and said he wants 100 million COVID-19 vaccine shots during his first 100 days in office.

Gold is considered a hedge against inflation and currency debasement, likely from large stimulus.

Although US inflation expectations have risen in anticipation of more US fiscal stimulus, gold has not been the sole beneficiary, bond yields have risen and weighed on gold, Phillip Futures said in a note.

"Our market view remain bullish for the long term as the US dollar is expected to remain structurally weak in the long term."

The US Treasury yields scaled a 10-month high last week.

Among other precious metals, silver rose 1.2% to $25.03 an ounce. Platinum rose 0.7% to $1,081.10, while palladium gained 0.3% to $2,389.82.

Comments

Comments are closed.