Gold prices firm as dollar rally pauses
MG News | July 07, 2022 at 09:43 AM GMT+05:00
July 07, 2022: Gold prices edged up on Thursday from nine-month lows touched in the previous session after a break in the dollar's rally alleviated pressure on bullion, but analysts warned that the relief was likely to be temporary.
Spot gold firmed 0.3% to $1,744.19 per ounce by 0303 GMT, as the dollar dipped slightly from the 20-year highs reached on Wednesday, lending support to greenback-priced bullion.
U.S. gold futures rose 0.3% to $1,741.80.
"With momentum pointing south, dip buyers are effectively trying to catch a falling knife," said Matt Simpson, senior market analyst at City Index.
"$1,721 and $1,700 are potential levels of support for bulls to consider taking a punt.. but until the dollar tops, it likely is a punt."
In the prior session, strength in the dollar pushed bullion down as much as 1.9% to its lowest level since Sept. 30 at $1,731.00.
"This decline has room to continue," Ilya Spivak, a currency strategist at DailyFX said, adding that if gold falls through support at $1,715 per ounce, it could head under the $1,700 figure to the vicinity of about $1,680.
A deteriorating inflation situation prompted Federal Reserve officials to rally around an outsized interest rate increase, minutes of the U.S. central bank's June 14-15 policy meeting showed on Wednesday.
Trading in gold has been volatile over the past month as traders awaited a fresh catalyst for prices, which were hemmed into a range by support from a worsening economic outlook and the weight of an elevated dollar.
Higher interest rates and bond yields lift the opportunity cost of holding non-yielding bullion.
World equities on Thursday were caught between growth worries and relief that a slowdown might put the brakes on interest rate hikes.
Spot silver rose 0.7% to $19.32 per ounce, platinum gained 0.2% to $857.53, and palladium climbed 1.2% to $1,927.92.
Reuters
Related News
| Name | Price/Vol | %Chg/NChg |
|---|---|---|
| KSE100 | 173,962.82 313.69M | 1.30% 2237.52 |
| ALLSHR | 104,178.62 550.40M | 0.93% 964.13 |
| KSE30 | 52,166.33 164.58M | 1.26% 649.19 |
| KMI30 | 250,496.48 141.11M | 1.59% 3930.77 |
| KMIALLSHR | 67,844.06 318.73M | 1.20% 801.29 |
| BKTi | 47,430.11 44.68M | 0.28% 130.40 |
| OGTi | 36,386.96 9.01M | 0.13% 45.59 |
| Symbol | Bid/Ask | High/Low |
|---|
| Name | Last | High/Low | Chg/%Chg |
|---|---|---|---|
| BITCOIN FUTURES | 74,150.00 | 74,165.00 73,715.00 | 435.00 0.59% |
| BRENT CRUDE | 91.89 | 92.95 89.93 | -0.81 -0.87% |
| RICHARDS BAY COAL MONTHLY | 117.00 | 0.00 0.00 | -0.75 -0.64% |
| ROTTERDAM COAL MONTHLY | 130.25 | 131.75 130.00 | -0.20 -0.15% |
| USD RBD PALM OLEIN | 1,157.50 | 1,157.50 1,157.50 | 0.00 0.00% |
| CRUDE OIL - WTI | 87.76 | 89.02 86.35 | -1.14 -1.28% |
| SUGAR #11 WORLD | 14.07 | 14.35 13.90 | 0.14 1.01% |
Chart of the Day
Latest News
Top 5 things to watch in this week
Pakistan Stock Movers
| Name | Last | Chg/%Chg |
|---|
| Name | Last | Chg/%Chg |
|---|