Gold prices firm as dollar rally pauses

News Image

MG News | July 07, 2022 at 09:43 AM GMT+05:00

0:00

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 136,502.54
259.91M
1.64%
2202.77
ALLSHR 85,079.90
838.35M
1.26%
1061.74
KSE30 41,552.62
97.27M
1.81%
738.33
KMI30 193,330.76
84.69M
0.39%
741.60
KMIALLSHR 56,315.31
366.02M
0.43%
243.06
BKTi 38,498.08
37.91M
4.13%
1526.33
OGTi 28,138.38
5.66M
-0.36%
-101.89
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 120,570.00 123,615.00
118,675.00
2040.00
1.72%
BRENT CRUDE 69.07 71.53
69.05
-1.29
-1.83%
RICHARDS BAY COAL MONTHLY 97.50 0.00
0.00
0.25
0.26%
ROTTERDAM COAL MONTHLY 106.50 106.60
106.50
-2.20
-2.02%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 66.83 69.65
66.80
-1.62
-2.37%
SUGAR #11 WORLD 16.31 16.67
16.27
-0.26
-1.57%

Chart of the Day


Latest News
July 14, 2025 at 05:26 PM GMT+05:00

Gold price in Pakistan rises Rs1,600 per tola


July 14, 2025 at 04:59 PM GMT+05:00

Tax reforms focus on public ease, transparency


July 14, 2025 at 04:23 PM GMT+05:00

PSX Closing Bell: Another One Bites the High


July 14, 2025 at 04:06 PM GMT+05:00

PKR falls 25 paisa per USD



Top 5 things to watch in this week

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