ISLAMABAD: Gold price regained positive traction amid disappointing US Non-Farm Payroll (NFP) report and weakened US dollar and shot to near one-month tops.
Gold in the international market was available at $1,828.60 per ounce after gaining $18 to close the week.
Meanwhile, the price of 10 grams of yellow metal in Pakistan increased to Rs98,200 after gaining Rs200. The closing prices of the yellow metal in the country remained Rs98,000 on Friday last. As the local market closes ahead of the international market, the difference is settled on the very next day.
According to experts, gold caught some fresh bids in reaction to disappointing headline NFP data. The US dollar weakened across the board after the closely-watched US monthly jobs report showed that the US economy added 235,000 new jobs in August. This was well below the previous month’s upwardly revised reading of 1,053,000 and missed expectations by a big margin.
Investors pushed back their expectations for the likely timing when the Fed will begin rolling back its massive pandemic-era stimulus. This, in turn, exerted some additional pressure on the already weaker US dollar and provided a goodish lift to dollar-denominated commodities, including gold.
Meanwhile, the data now seemed to have raised doubts about the US labour market recovery and fueled worries about the potential risks associated with the fast-spreading delta variant of the coronavirus. This was evident from a weaker tone around equity markets, which further benefited the safe-haven gold.
However, a sharp spike in the US Treasury bond yields held bulls from placing aggressive bets and kept a lid on any further gains for the non-yielding gold. – TLTP
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