AGL 38.14 Increased By ▲ 0.12 (0.32%)
AIRLINK 211.50 Increased By ▲ 14.14 (7.16%)
BOP 9.84 Increased By ▲ 0.30 (3.14%)
CNERGY 6.45 Increased By ▲ 0.54 (9.14%)
DCL 9.18 Increased By ▲ 0.36 (4.08%)
DFML 37.95 Increased By ▲ 2.21 (6.18%)
DGKC 100.60 Increased By ▲ 3.74 (3.86%)
FCCL 36.00 Increased By ▲ 0.75 (2.13%)
FFBL 88.94 Increased By ▲ 6.64 (8.07%)
FFL 14.49 Increased By ▲ 1.32 (10.02%)
HUBC 134.00 Increased By ▲ 6.45 (5.06%)
HUMNL 13.70 Increased By ▲ 0.20 (1.48%)
KEL 5.66 Increased By ▲ 0.34 (6.39%)
KOSM 7.24 Increased By ▲ 0.24 (3.43%)
MLCF 45.45 Increased By ▲ 0.75 (1.68%)
NBP 61.50 Increased By ▲ 0.08 (0.13%)
OGDC 232.00 Increased By ▲ 17.33 (8.07%)
PAEL 40.90 Increased By ▲ 2.11 (5.44%)
PIBTL 8.55 Increased By ▲ 0.30 (3.64%)
PPL 203.75 Increased By ▲ 10.67 (5.53%)
PRL 40.00 Increased By ▲ 1.34 (3.47%)
PTC 27.70 Increased By ▲ 1.90 (7.36%)
SEARL 108.25 Increased By ▲ 4.65 (4.49%)
TELE 8.70 Increased By ▲ 0.40 (4.82%)
TOMCL 36.21 Increased By ▲ 1.21 (3.46%)
TPLP 13.89 Increased By ▲ 0.59 (4.44%)
TREET 24.38 Increased By ▲ 2.22 (10.02%)
TRG 61.15 Increased By ▲ 5.56 (10%)
UNITY 34.49 Increased By ▲ 1.52 (4.61%)
WTL 1.73 Increased By ▲ 0.13 (8.13%)
BR100 12,207 Increased By 480.4 (4.1%)
BR30 38,088 Increased By 1711.5 (4.7%)
KSE100 113,892 Increased By 4378.6 (4%)
KSE30 36,044 Increased By 1531 (4.44%)

Gold fell 1 percent early on Thursday to a near a 5-1/2-year low as the dollar rose after data showed the US economy improved in the second quarter, supporting views that the Federal Reserve would lift rates by year-end. The US Department of Commerce said gross domestic product expanded at a 2.3 percent annual rate. First-quarter GDP, previously reported to have shrunk at a 0.2 percent pace, was revised up to show a 0.6 percent rise.
Spot gold dropped as much as 1.3 percent to a session low of $1,081.85 an ounce in earlier trading, not far from its cheapest since February 2010 at $1,077 hit after a selloff on July 20. It was down 0.7 percent at $1,089.11 by 2:07 pm EDT (1807 GMT). With the stronger dollar and the likelihood of a rate hike by the end of the year, "there's no need for any kind of safety whatsoever," said Phillip Streible, senior commodities broker for RJO Futures in Chicago.
After a two-day meeting, Fed policymakers said the US economy had overcome a first-quarter slowdown and was "expanding moderately." That buoyed the dollar, which was up 0.4 percent against a basket of leading currencies, making dollar-priced gold more costly for non-US buyers. US gold for August delivery slipped 0.4 percent to settle at $1,088.40 an ounce.
"As the focus is back on the dollar and its strength, the trajectory for gold is down until a hike actually happens," Citigroup strategist David Wilson said. Mizuho Bank said in a note that it expected just one rate increase this year, with the Fed adopting a gradual pace of tightening. "And policy will continue to be conditioned on data," it added.
Holdings of the largest gold-backed exchange-traded fund, New York's SPDR Gold Trust, were unchanged at 21.87 million ounces for a second day on Wednesday. That level is the lowest since September 2008. Spot platinum was up 0.1 percent at $983.24 an ounce, within reach of a 6-1/2-year low of $942.49 hit in the previous week. Palladium was up 0.2 percent at $617.25 an ounce, and silver dropped 0.1 percent to $14.72 an ounce.

Copyright Reuters, 2015

Comments

Comments are closed.