AGL 40.90 Increased By ▲ 0.70 (1.74%)
AIRLINK 129.50 Increased By ▲ 0.39 (0.3%)
BOP 6.40 Decreased By ▼ -0.20 (-3.03%)
CNERGY 4.01 Decreased By ▼ -0.02 (-0.5%)
DCL 8.40 Decreased By ▼ -0.05 (-0.59%)
DFML 42.30 Increased By ▲ 1.05 (2.55%)
DGKC 86.99 Decreased By ▼ -0.01 (-0.01%)
FCCL 33.66 Increased By ▲ 0.31 (0.93%)
FFBL 65.65 Decreased By ▼ -0.25 (-0.38%)
FFL 10.64 Increased By ▲ 0.10 (0.95%)
HUBC 112.62 Increased By ▲ 1.92 (1.73%)
HUMNL 15.77 Increased By ▲ 0.54 (3.55%)
KEL 4.80 Increased By ▲ 0.02 (0.42%)
KOSM 7.88 Increased By ▲ 0.05 (0.64%)
MLCF 41.90 No Change ▼ 0.00 (0%)
NBP 60.50 No Change ▼ 0.00 (0%)
OGDC 184.09 Increased By ▲ 1.29 (0.71%)
PAEL 25.55 Increased By ▲ 0.19 (0.75%)
PIBTL 7.26 Increased By ▲ 1.00 (15.97%)
PPL 146.20 Decreased By ▼ -1.61 (-1.09%)
PRL 24.50 Decreased By ▼ -0.06 (-0.24%)
PTC 16.35 Increased By ▲ 0.11 (0.68%)
SEARL 70.55 Increased By ▲ 0.05 (0.07%)
TELE 7.39 Increased By ▲ 0.09 (1.23%)
TOMCL 36.30 No Change ▼ 0.00 (0%)
TPLP 8.08 Increased By ▲ 0.23 (2.93%)
TREET 15.25 Decreased By ▼ -0.05 (-0.33%)
TRG 51.83 Increased By ▲ 0.13 (0.25%)
UNITY 27.49 Increased By ▲ 0.14 (0.51%)
WTL 1.28 Increased By ▲ 0.05 (4.07%)
BR100 9,869 Increased By 26.8 (0.27%)
BR30 30,164 Increased By 127.3 (0.42%)
KSE100 92,790 Increased By 269.2 (0.29%)
KSE30 28,837 Increased By 50.7 (0.18%)

NEW YORK: Gold prices rose on Thursday but traded near a three-week low, as market participants awaited an expected rate cut decision by the US Federal Reserve later in the day.

Spot gold gained 0.3% to $2,667.40 per ounce, as of 1051 GMT, after hitting its lowest level since Oct. 15 earlier in the session. US gold futures shed 0.1% to $2,674.20.

The dollar index eased from a four-month high, following Republican Donald Trump’s win in the US presidential election. A stronger dollar tends to make bullion less attractive for overseas buyers.

“The long-term impact of the new administration’s trade policies could lead to higher inflation, potentially forcing the Fed to maintain elevated interest rates for an extended period. In such a scenario, non-yielding assets like gold would likely come under additional pressure,” said Ricardo Evangelista, senior analyst at ActivTrades.

Gold is considered a hedge against inflation but higher interest rates reduce non-yielding bullion’s appeal. “From a technical perspective, I see a support line around $2600 and a new resistance level at $2700” Evangelista added.

The market is expecting a 25-basis-point reduction from the Fed, which is set to announce its decision at 1900 GMT. All eyes are also on Chair Jerome Powell’s press conference.

On Sept.18, the Fed kick-started the policy easing cycle with a half-percentage-point rate cut. “The Fed is likely to signal a data-dependent path, but with the US job market indicating a slowdown, that should be sufficient for cutting rates today. We still look for gold to rise to $2,900 over the next 12 months,” said UBS analyst Giovanni Staunovo.

Elsewhere, China’s central bank refrained from purchasing gold for its reserves for the sixth consecutive month in October, according to official data.

Spot silver fell 0.1% to $31.13 per ounce, platinum slipped 0.7% to $979.95 and palladium declined 0.6% to $1,029.19. All three metals were down for a second straight session.

Comments

200 characters