Gold ticks lower on firmer dollar after Fed cranks up rates
MG News | June 16, 2022 at 09:26 AM GMT+05:00
June 16, 2022: Gold prices inched lower on Thursday, as the dollar recovered slightly after a large but widely expected interest rate hike by the U.S. central bank sent the currency tumbling in the previous session.
Spot gold fell 0.1% to $1,831.63 per ounce, as of 0235 GMT, while U.S. gold futures rose 0.8% to $1,833.40.
The conflicting currents of support from potential safe-haven demand and inflationary hedge buying versus pressure from a higher interest rate regime are keeping gold prices balanced, said Michael McCarthy, chief strategy officer at Tiger Brokers, Australia.
Higher short-term U.S. interest rates and bond yields increase the opportunity cost of holding bullion, which yields no interest.
The U.S. Federal Reserve on Wednesday approved a 75-basis-point interest rate hike, its largest in more than a quarter of a century, to stem a surge in inflation, and flagged a slowing economy.
"Gold has been remarkably range-bound for weeks now (despite major news)... and it's a real head-scratcher for traders at the moment to work out what exactly will drive gold out of this range," McCarthy said, adding the dollar's overall upward trend presented a cautious outlook for gold.
The Fed's announcement drove longer-dated U.S. government bond yields lower and nudged the dollar off two-decade highs, which took gold as much as 1.9% higher in the previous session.
Meanwhile, Asian stocks rose on Thursday, carrying momentum from a global equities rally overnight.
However, key investors with big positions in gold know that the economic outlook is still challenging and still prefer to hold bullion as a safe-haven asset, said Brian Lan, managing director at dealer GoldSilver Central.
Spot silver firmed 0.1% to $21.67 per ounce, platinum gained 0.2% to $940.98, and palladium rose 0.5% to $1,870.79.
Reuters
Related News
| Name | Price/Vol | %Chg/NChg |
|---|---|---|
| KSE100 | 172,399.90 320.00M | 1.59% 2696.30 |
| ALLSHR | 103,927.90 888.16M | 1.29% 1323.37 |
| KSE30 | 51,428.16 185.27M | 1.65% 836.84 |
| KMI30 | 246,743.08 136.63M | 1.75% 4243.24 |
| KMIALLSHR | 67,499.94 461.75M | 1.34% 890.73 |
| BKTi | 46,974.29 67.03M | 1.67% 773.64 |
| OGTi | 35,183.53 7.71M | 0.85% 295.91 |
| Symbol | Bid/Ask | High/Low |
|---|
| Name | Last | High/Low | Chg/%Chg |
|---|---|---|---|
| BITCOIN FUTURES | 64,240.00 | 64,800.00 63,430.00 | 580.00 0.91% |
| BRENT CRUDE | 86.80 | 89.90 85.80 | -3.58 -3.96% |
| RICHARDS BAY COAL MONTHLY | 123.00 | 0.00 0.00 | 1.10 0.90% |
| ROTTERDAM COAL MONTHLY | 131.00 | 131.00 130.00 | -1.75 -1.32% |
| USD RBD PALM OLEIN | 1,157.50 | 1,157.50 1,157.50 | 0.00 0.00% |
| CRUDE OIL - WTI | 84.29 | 0.00 0.00 | -0.59 -0.70% |
| SUGAR #11 WORLD | 13.70 | 13.97 13.68 | -0.09 -0.65% |
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 |
|---|
FY27 Budget