Gold slips off 2-week peak as dollar ticks higher

News Image

By MG News | May 25, 2022 at 09:15 AM GMT+05:00

0:00

May 25, 2022: Gold prices edged lower on Wednesday, slipping from a two-week high hit in the previous session, as the dollar reclaimed some ground, but uncertainty over the trajectory of inflation supported the safe-haven bullion's outlook.

Spot gold eased 0.2% to $1,862.48 per ounce, as of 0219 GMT, after rising to its highest level since May 9 of $1,869.49 on Tuesday. U.S. gold futures dipped 0.2% to $1,861.60.

The dollar index firmed after hitting its lowest level in a month in the previous session, making greenback-priced bullion more expensive for buyers holding other currencies.

"Investors are struggling with how to assess the landing path of inflation now that peak inflation is behind us. The question for the market is how long it will take to normalize, and that uncertainly is helping gold," said Stephen Innes, managing partner at SPI Asset Management.

As the Federal Reserve amps up its fight against 40-year-high inflation with what is expected to be a string of big interest-rate increases, one U.S. central banker injected a note of caution, warning headlong rate hikes could create "significant economic dislocation."

While gold is often seen as a hedge against inflation, higher short-term U.S. interest rates raise the opportunity cost of holding bullion, which yields nothing.

"Gold investors notice the softer change in the Fed language, and dips to $1,850.00 are met with solid support," Innes said.

"Traders will be looking to the FOMC (Federal Open Market Committee) minutes for policy hints beyond June and July, as September rate hike expectations could be hugely pivotal for gold prices."

Benchmark U.S. 10-year Treasury yields also firmed after a drop in the previous session to a one-month low, pressuring demand for zero-yield gold. 

Spot silver dipped 0.2% to $22.05 per ounce, while platinum gained 0.1% to $954.90, while palladium dropped 0.5% to $1,996.30.

Reuters

Related News

Name Price/Vol %Chg/NChg
KSE100 128,199.43
336.91M
2.05%
2572.11
ALLSHR 79,787.62
1,023.63M
1.53%
1202.91
KSE30 39,105.00
121.90M
2.49%
951.21
KMI30 186,915.61
131.16M
1.10%
2029.11
KMIALLSHR 54,201.88
553.60M
0.81%
438.07
BKTi 33,476.68
51.49M
4.87%
1555.00
OGTi 27,962.58
9.77M
0.68%
188.60
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 106,170.00 106,205.00
105,440.00
420.00
0.40%
BRENT CRUDE 67.16 67.29
67.05
0.05
0.07%
RICHARDS BAY COAL MONTHLY 97.50 97.50
97.50
0.70
0.72%
ROTTERDAM COAL MONTHLY 103.80 103.80
103.80
-3.45
-3.22%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 65.47 65.65
65.34
0.02
0.03%
SUGAR #11 WORLD 15.70 16.21
15.55
-0.50
-3.09%

Chart of the Day


Latest News
July 02, 2025 at 06:01 AM GMT+05:00

MG Morning Breeze: Updates to Skim before Market


July 01, 2025 at 10:04 PM GMT+05:00

Pakistan’s trade deficit improves by over 9% in June


July 01, 2025 at 05:24 PM GMT+05:00

Gold price in Pakistan rises Rs6,600 per tola



Top 5 things to watch in this week

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