AGL 38.56 Decreased By ▼ -0.77 (-1.96%)
AIRLINK 207.77 Increased By ▲ 17.83 (9.39%)
BOP 10.06 Increased By ▲ 0.55 (5.78%)
CNERGY 7.08 Decreased By ▼ -0.04 (-0.56%)
DCL 9.99 Decreased By ▼ -0.23 (-2.25%)
DFML 41.14 Decreased By ▼ -0.54 (-1.3%)
DGKC 103.46 Decreased By ▼ -6.36 (-5.79%)
FCCL 36.35 Decreased By ▼ -1.81 (-4.74%)
FFBL 91.59 Decreased By ▼ -4.67 (-4.85%)
FFL 14.60 Decreased By ▼ -0.29 (-1.95%)
HUBC 139.43 Increased By ▲ 10.60 (8.23%)
HUMNL 14.10 Decreased By ▼ -0.42 (-2.89%)
KEL 5.97 Decreased By ▼ -0.22 (-3.55%)
KOSM 7.86 Decreased By ▼ -0.13 (-1.63%)
MLCF 47.28 Decreased By ▼ -2.70 (-5.4%)
NBP 73.76 Increased By ▲ 1.33 (1.84%)
OGDC 222.66 Decreased By ▼ -10.63 (-4.56%)
PAEL 38.11 Increased By ▲ 2.99 (8.51%)
PIBTL 9.27 Decreased By ▼ -0.09 (-0.96%)
PPL 205.85 Decreased By ▼ -5.55 (-2.63%)
PRL 39.85 Increased By ▲ 3.33 (9.12%)
PTC 26.62 Increased By ▲ 0.58 (2.23%)
SEARL 110.24 Decreased By ▼ -4.56 (-3.97%)
TELE 9.23 Decreased By ▼ -0.18 (-1.91%)
TOMCL 38.21 Decreased By ▼ -0.39 (-1.01%)
TPLP 13.77 Increased By ▲ 0.98 (7.66%)
TREET 26.45 Increased By ▲ 0.47 (1.81%)
TRG 60.54 Decreased By ▼ -1.46 (-2.35%)
UNITY 34.14 Decreased By ▼ -1.43 (-4.02%)
WTL 1.88 Decreased By ▼ -0.04 (-2.08%)
BR100 12,299 Decreased By -48 (-0.39%)
BR30 38,877 Decreased By -222.6 (-0.57%)
KSE100 114,861 Decreased By -1308.7 (-1.13%)
KSE30 36,196 Decreased By -462.8 (-1.26%)
Markets

Gold at over 1-month low after Fed's hint of early rate hikes

  • Higher interest rates will dull gold's appeal as they translate into a higher opportunity cost of holding it.
Published June 17, 2021

Gold prices hovered near a more than one-month low on Thursday as the dollar and US Treasury yields jumped after Federal Reserve officials projected interest rate hikes sooner than expected.

FUNDAMENTALS

  • Following a drop of 2.5% in the previous session to its lowest since May 6 at $1,803.79 per ounce, spot gold was slightly up 0.2% as of 0039 GMT in early Asian trade.

  • US gold futures were down 2.4% at $1,816.90 per ounce.

  • The dollar index jumped to its highest level in two months against its rivals, making gold more expensive for holders of other currencies.

  • The benchmark 10-year yield rose to its highest level since June 4 at 1.594%, increasing the opportunity cost of holding non-interest bearing gold.

  • The Fed on Wednesday began closing the door on its pandemic-driven monetary policy as officials projected an accelerated timetable for interest rate increases, opened talks on how to end crisis-era bond-buying and said the 15-month-old health emergency was no longer a core constraint on US commerce.

  • Futures on the federal funds rate, which track short-term interest rate expectations, raised bets that the US central bank will tighten monetary policy in early 2023 after Fed projections showed at least two rate increases that year.

  • Higher interest rates will dull gold's appeal as they translate into a higher opportunity cost of holding it.

  • SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.1% to 1,045.78 tonnes on Wednesday.

  • Inflation expectations in Britain are well anchored around the Bank of England's target of 2%, finance minister Rishi Sunak said after data showed inflation broke above the target for the first time in nearly two years.

  • Silver gained 0.6% to $27.14 per ounce, palladium eased 0.1% to $2,794.16, while platinum rose 0.1% to $1,123.50.

Comments

Comments are closed.