AGL 40.24 Increased By ▲ 0.24 (0.6%)
AIRLINK 130.70 Increased By ▲ 1.17 (0.9%)
BOP 6.79 Increased By ▲ 0.11 (1.65%)
CNERGY 4.60 Decreased By ▼ -0.03 (-0.65%)
DCL 8.92 Decreased By ▼ -0.02 (-0.22%)
DFML 43.30 Increased By ▲ 1.61 (3.86%)
DGKC 84.01 Increased By ▲ 0.24 (0.29%)
FCCL 33.06 Increased By ▲ 0.29 (0.88%)
FFBL 78.20 Increased By ▲ 2.73 (3.62%)
FFL 11.72 Increased By ▲ 0.25 (2.18%)
HUBC 110.80 Increased By ▲ 0.25 (0.23%)
HUMNL 14.64 Increased By ▲ 0.08 (0.55%)
KEL 5.63 Increased By ▲ 0.24 (4.45%)
KOSM 8.29 Decreased By ▼ -0.11 (-1.31%)
MLCF 39.76 Decreased By ▼ -0.03 (-0.08%)
NBP 60.90 Increased By ▲ 0.61 (1.01%)
OGDC 199.90 Increased By ▲ 0.24 (0.12%)
PAEL 26.63 Decreased By ▼ -0.02 (-0.08%)
PIBTL 7.80 Increased By ▲ 0.14 (1.83%)
PPL 159.80 Increased By ▲ 1.88 (1.19%)
PRL 26.70 Decreased By ▼ -0.03 (-0.11%)
PTC 18.60 Increased By ▲ 0.14 (0.76%)
SEARL 83.11 Increased By ▲ 0.67 (0.81%)
TELE 8.20 Decreased By ▼ -0.11 (-1.32%)
TOMCL 34.38 Decreased By ▼ -0.13 (-0.38%)
TPLP 9.13 Increased By ▲ 0.07 (0.77%)
TREET 17.03 Decreased By ▼ -0.44 (-2.52%)
TRG 60.49 Decreased By ▼ -0.83 (-1.35%)
UNITY 28.00 Increased By ▲ 0.57 (2.08%)
WTL 1.44 Increased By ▲ 0.06 (4.35%)
BR100 10,560 Increased By 153.4 (1.47%)
BR30 31,952 Increased By 238.9 (0.75%)
KSE100 98,583 Increased By 1254.4 (1.29%)
KSE30 30,686 Increased By 493.6 (1.63%)

LONDON: Gold prices edged up on Thursday buoyed by persistent inflation concerns, with further gains in bullion clipped by expectations that the Federal Reserve may hasten its monetary tightening to tame rising prices.

Spot gold rose 0.12% to $1,790.70 per ounce by 1250 GMT, recovering some ground after slipping to its lowest since Nov. 4 on Wednesday. US gold futures gained 0.4% to $1,791.40.

Trading is likely to be thinned by the US Thanksgiving holiday.

“Gold still has some recovery potential on anticipation of high inflation figures. But essentially, with the Fed pursuing the ongoing tapering, that should push up real rates at a later stage,” keeping prices volatile, said UBS analyst Giovanni Staunovo.

Although bullion is considered a hedge against rising inflation, interest rate hikes tend to push government bond yields up and thereby raise the opportunity cost of holding gold.

A growing number of Fed policymakers indicated they would be open to speeding up the elimination of their bond-buying program if high inflation held and move more quickly to raise interest rates, minutes of the central bank’s last policy meeting showed.

In the wake of Wednesday’s strong economic data from the US, including a sharp drop in weekly jobless claims, calls for a faster taper are expected to rise when the Fed meets next on Dec. 14-15, said CMC Markets UK’s chief market analyst Michael Hewson in a note.

Gold also tracked moves in the dollar index, which eased off an over 16-month high.

“The prevailing sentiment is that the price of gold will be facing some headwinds,” and bullion could face significant resistance around the $1,800 - $1,810 levels, said Ricardo Evangelista, senior analyst at ActivTrades.

Spot silver rose 0.4% to $23.62 per ounce, platinum gained 1.6% to $989.78, and palladium advanced 1.5% to $1,879.18.

Comments

Comments are closed.