AGL 38.09 Increased By ▲ 0.15 (0.4%)
AIRLINK 195.00 Increased By ▲ 1.09 (0.56%)
BOP 9.35 Increased By ▲ 0.03 (0.32%)
CNERGY 5.82 Decreased By ▼ -0.02 (-0.34%)
DCL 8.46 Decreased By ▼ -0.22 (-2.53%)
DFML 35.35 Decreased By ▼ -1.11 (-3.04%)
DGKC 95.20 Increased By ▲ 2.66 (2.87%)
FCCL 35.30 Increased By ▲ 1.33 (3.92%)
FFBL 85.66 Increased By ▲ 3.36 (4.08%)
FFL 12.77 Increased By ▲ 0.02 (0.16%)
HUBC 124.99 Increased By ▲ 4.38 (3.63%)
HUMNL 13.50 Decreased By ▼ -0.10 (-0.74%)
KEL 5.22 No Change ▼ 0.00 (0%)
KOSM 6.95 Increased By ▲ 0.43 (6.6%)
MLCF 44.20 Increased By ▲ 2.09 (4.96%)
NBP 59.89 Increased By ▲ 0.08 (0.13%)
OGDC 213.01 Increased By ▲ 1.84 (0.87%)
PAEL 37.95 Increased By ▲ 0.37 (0.98%)
PIBTL 8.08 Increased By ▲ 0.01 (0.12%)
PPL 190.90 Increased By ▲ 0.58 (0.3%)
PRL 38.82 Increased By ▲ 0.65 (1.7%)
PTC 25.50 Increased By ▲ 2.05 (8.74%)
SEARL 100.00 Increased By ▲ 2.06 (2.1%)
TELE 8.06 Decreased By ▼ -0.16 (-1.95%)
TOMCL 34.50 Decreased By ▼ -0.53 (-1.51%)
TPLP 13.20 Decreased By ▼ -0.35 (-2.58%)
TREET 22.06 Decreased By ▼ -0.67 (-2.95%)
TRG 54.42 Increased By ▲ 1.55 (2.93%)
UNITY 33.20 Increased By ▲ 0.24 (0.73%)
WTL 1.54 Increased By ▲ 0.02 (1.32%)
AGL 38.09 Increased By ▲ 0.15 (0.4%)
AIRLINK 195.00 Increased By ▲ 1.09 (0.56%)
BOP 9.35 Increased By ▲ 0.03 (0.32%)
CNERGY 5.82 Decreased By ▼ -0.02 (-0.34%)
DCL 8.46 Decreased By ▼ -0.22 (-2.53%)
DFML 35.35 Decreased By ▼ -1.11 (-3.04%)
DGKC 95.20 Increased By ▲ 2.66 (2.87%)
FCCL 35.30 Increased By ▲ 1.33 (3.92%)
FFBL 85.66 Increased By ▲ 3.36 (4.08%)
FFL 12.77 Increased By ▲ 0.02 (0.16%)
HUBC 124.99 Increased By ▲ 4.38 (3.63%)
HUMNL 13.50 Decreased By ▼ -0.10 (-0.74%)
KEL 5.22 No Change ▼ 0.00 (0%)
KOSM 6.95 Increased By ▲ 0.43 (6.6%)
MLCF 44.20 Increased By ▲ 2.09 (4.96%)
NBP 59.89 Increased By ▲ 0.08 (0.13%)
OGDC 213.01 Increased By ▲ 1.84 (0.87%)
PAEL 37.95 Increased By ▲ 0.37 (0.98%)
PIBTL 8.08 Increased By ▲ 0.01 (0.12%)
PPL 190.90 Increased By ▲ 0.58 (0.3%)
PRL 38.82 Increased By ▲ 0.65 (1.7%)
PTC 25.50 Increased By ▲ 2.05 (8.74%)
SEARL 100.00 Increased By ▲ 2.06 (2.1%)
TELE 8.06 Decreased By ▼ -0.16 (-1.95%)
TOMCL 34.50 Decreased By ▼ -0.53 (-1.51%)
TPLP 13.20 Decreased By ▼ -0.35 (-2.58%)
TREET 22.06 Decreased By ▼ -0.67 (-2.95%)
TRG 54.42 Increased By ▲ 1.55 (2.93%)
UNITY 33.20 Increased By ▲ 0.24 (0.73%)
WTL 1.54 Increased By ▲ 0.02 (1.32%)
BR100 11,538 Increased By 154.1 (1.35%)
BR30 35,739 Increased By 527.2 (1.5%)
KSE100 107,844 Increased By 1568.6 (1.48%)
KSE30 33,929 Increased By 576 (1.73%)

AMSTERDAM: Gold prices slipped 1% toward 2-1/2-month lows on Monday as investors braced for a large interest rate hike by the US Federal Reserve, as it seeks to contain soaring inflation, denting the zero-yield bullion’s appeal.

Spot gold fell 0.9% to $1,880.01 per ounce by 1000 GMT, hovering near last week’s low of $1,871.81 an ounce. US gold futures dropped 1.6% to $1,880.70.

“Calls for more and more rate hikes by Fed officials has been setting the tone in the gold market lately, and that’s also pushed up the yields on 10-year TIPS (Treasury Inflation-Protected Security)... this is providing the biggest headwinds for gold taken together with a quite a strong US dollar,” said Julius Baer analyst Carsten Menke.

The US central bank’s Federal Open Market Committee is scheduled to begin its two-day meeting on May 3 and announce its decision the next day.

US policymakers look set to deliver a series of aggressive rate hikes at least until the summer to deal with rapid inflation and surging labour costs, even as two reports released on Friday showed tentative signs that both may be cresting.

A rate hike of 50 basis points on Wednesday evening should come as no surprise, nor weigh additionally on the gold price, especially as Fed Chair Jerome Powell has more or less announced this in advance, Commerzbank analysts wrote in a note.

Gold is highly exposed to interest rates as higher rates lift the opportunity cost of holding non-yielding assets and strengthen the dollar in which gold is priced, making bullion expensive for holders of other currencies.

The dollar held near a 20-year high, while benchmark 10-year US Treasury yields rose towards recent multi-year peaks.

Spot silver fell 0.3% to $22.68 per ounce, palladium slid 2.2% to $2,269.68, while platinum edged 0.4% higher to $935.00.

Comments

Comments are closed.