Gold gains on softer dollar with focus on Fed meeting

News Image

MG News | July 26, 2022 at 09:19 AM GMT+05:00

0:00

July 26, 2022: Gold prices rose on Tuesday on the back of a weaker dollar, but remained stuck in a tight range as investors refrained from making big bets ahead of a possible aggressive U.S. interest rate hike.

Spot gold was up 0.3% at $1,724.45 per ounce, as of 0311 GMT. U.S. gold futures gained 0.3% to $1,723.60 per ounce.

The dollar slipped for a fourth straight session, down 0.2% against its rivals, making gold less expensive for buyers holding other currencies. 

"We're not really seeing a tremendous amount of directional conviction here. It seems like the market is most importantly waiting for the Fed announcement," said Ilya Spivak, a currency strategist at DailyFX.

"However, markets over the past two weeks have been consistent with gold picking up and the dollar pulling back, suggesting they are kind of getting comfortable with where the rates outlook they think is going."

The U.S. Federal Reserve is widely expected to raise interest rates by 75 basis points at the conclusion of its policy meeting on Wednesday. A hike of that magnitude would effectively close out pandemic-era support for the economy.

Expectations around a 100-bp rate hike surged after U.S. annual consumer prices saw their sharpest spike in more than four decades in June. However, traders dialed down those bets following recent weak economic readings.

Meanwhile, the European Central Bank may not be done with big rate hikes after its initial half-point increase last week, Latvian central bank governor Martins Kazaks said in an interview with Bloomberg News.

Rising interest rates increase the opportunity cost of holding non-yielding bullion.

Indicative of sentiment, holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.06% to 1,005.29 tonnes on Monday. 

Elsewhere, spot silver rose 0.6% to $18.52 per ounce, platinum gained 0.8% to $886 and palladium was steady at $2,009.

Reuters

Related News

Name Price/Vol %Chg/NChg
KSE100 138,412.25
167.69M
0.32%
447.43
ALLSHR 85,702.96
423.92M
0.15%
131.52
KSE30 42,254.84
82.09M
0.43%
180.24
KMI30 194,109.59
84.37M
0.15%
281.36
KMIALLSHR 56,713.67
217.03M
0.03%
16.37
BKTi 37,831.34
13.04M
1.62%
603.62
OGTi 27,440.63
3.93M
-0.09%
-23.70
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 119,605.00 119,740.00
118,145.00
1310.00
1.11%
BRENT CRUDE 72.99 73.17
71.75
0.48
0.66%
RICHARDS BAY COAL MONTHLY 96.50 0.00
0.00
2.20
2.33%
ROTTERDAM COAL MONTHLY 104.50 104.50
104.50
-0.30
-0.29%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 69.74 69.83
68.45
0.53
0.77%
SUGAR #11 WORLD 16.56 16.58
16.37
-0.03
-0.18%

Chart of the Day


Latest News
July 30, 2025 at 05:54 PM GMT+05:00

Pakistan BCI decreased by 1.2 points in July


July 30, 2025 at 05:17 PM GMT+05:00

Pakistan consumer confidence falls to 40.1 points in July


July 30, 2025 at 05:03 PM GMT+05:00

PKR rises by 10 paisa against USD


July 30, 2025 at 04:11 PM GMT+05:00

PSX Closing Bell: You Can’t Always Get What You Want



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg