Connect with us

Business

Gold slips as dollar firms ahead of US inflation data

Published

on

Gold slips as dollar firms ahead of US inflation data

Gold prices slipped on Friday as the dollar ticked up, with traders awaiting U.S. inflation data due later in the day to gauge the Federal Reserve s likely stance on further interest rate hikes.

Spot gold fell 0.4% to $1,921.32 per ounce, as of 0452 GMT, shedding 0.3% so far in the week. U.S. gold futures were off 0.4% at $1,921.60.

The dollar index gained 0.2%. A stronger greenback makes dollar-priced bullion less affordable for other currency holders.

Gold is seeing a pull-back as the dollar is on the higher side and the U.S. GDP data is also slightly pressuring prices, said Ajay Kedia, director at Kedia Commodities, Mumbai.

Advertisement

Data on Thursday showed the U.S. economy grew at a faster pace in the December quarter than economists had expected, prompting bets the Fed would keep rates higher for longer.

However, this could have been the last quarter of solid growth before the impact of the Fed s aggressive tightening spree shows up, with most economists expecting a mild recession by the second half of 2023.

Traders broadly expect the Fed to scale back rate hikes to 25 basis points (bps) at its Jan. 31-Feb. 1 meeting, from 50 bps in December.

Investors are now awaiting U.S. personal consumption expenditures (PCE) data, the Fed s preferred inflation measure, at 1330 GMT for cues on the central bank s path forward.

A downside surprise may point towards a less-hawkish Fed, which could drive gold prices higher in the longer run, said IG Market strategist Yeap Jun Rong.

Advertisement

Advertisement · Scroll to continue
Lower interest rates tend to be beneficial for bullion as it lowers the opportunity cost of holding the non-yielding asset.

Spot silver fell 0.4% to $23.81 per ounce.

Platinum lost 1% to $1,007.88 and palladium slipped 0.9% to $1,662.55. Both metals were headed for a third straight weekly decline. 

Advertisement

Business

Chinese firm aims to expand investments in Pakistan, shows interest in mining sector

Chinese firm aims to expand investments in Pakistan, shows interest in mining sector

Published

on

By

Chinese firm aims to expand investments in Pakistan, shows interest in mining sector

 A notable Chinese company has expressed keen interest in expanding its investment in Pakistan, in yet another sign of investor confidence boost in the leadership of Prime Minister Shehbaz Sharif.

A delegation from Chinese firm MCC Tongsin Resources led by its Chairman Wang Jaichen called on PM Shehbaz here on Friday.

The premier invited the Chinese company to invest in Pakistan’s mining sector and manufacturing of export goods.

Shehbaz assured the delegation that his government would extend all-out facilitation to the company from minerals exploration and processing to the export of goods.

Advertisement

The PM instructed the relevant federal ministers and officers to continue consultation with the Chinese firm, taking the Balochistan chief minister, provincial departments and stakeholders on board.

The delegates reposed trust in PM Shehbaz’s leadership, and expressed keen interest in enhancing their investment in Pakistan’s mining and minerals sectors.

The delegation briefed Prime Minister Shehbaz about the construction of a mineral park in Pakistan and their future investment plans.

The premier welcomed the Chinese firm and highlighted the priority steps by his government to promote foreign investment in Pakistan.

He said that being a time-tested friend, China supported Pakistan in every difficult hour for which the Pakistani nation was grateful to the leadership and people of China.

Advertisement

Federal ministers Ahad Khan Cheema, Dr Musaddik Malik, Rana Tanveer Hussain, Jam Kamal Khan and relevant senior officers attended the meeting.

Continue Reading

Business

Govt jacks up power price by Rs1.47 per unit

Govt jacks up power price by Rs1.47 per unit

Published

on

By

Govt jacks up power price by Rs1.47 per unit

The government on Friday increased the electricity tariff by Rs1.47 per unit.

According to Nepra sources, the collection from consumers will take place in August, September, and October.

The electricity companies had requested the funds as part of the third quarter adjustment for 2023-2024, seeking Rs 31.34 billion under capacity charges.

Sources said that Rs5.57 billion were requested for operation and maintenance costs, and Rs12.38 billion were requested for the transmission and distribution impact under monthly fuel cost adjustment.

Advertisement

Previously, Nepra had completed the hearing on the electricity companies’ request under the quarterly adjustment.

Nepra approved the Power Division’s request, allowing an increase of Rs 1.45 per unit in electricity prices.

Continue Reading

Business

Hong Kong allows China’s digital yuan to be used in local shops

Hong Kong allows China’s digital yuan to be used in local shops

Published

on

By

Hong Kong allows China's digital yuan to be used in local shops

Hong Kong will allow mainland China’s pilot digital currency to be used in shops in the city, the head of its de facto central bank said on Friday, marking a step forward for Beijing’s efforts to internationalise the yuan amid rising geopolitical tensions.

The programme, backed by Beijing, will allow mainland Chinese and Hong Kong residents to open digital yuan wallets via a mobile app developed by China’s central bank and will permit them to make payments in retail shops and some online stores in Hong Kong and in mainland China.

Transactions using e-CNY, predominantly for domestic retail payments in China, hit 1.8 trillion yuan ($249.27 billion) as of end of June 2023, with 120 million digital wallets opened, according to the latest disclosure from China’s central bank.

Using the wallet, users can make payments at over 10 million merchants in 17 provinces and cities in the mainland.

Advertisement

Each wallet used in the city will be subject to a balance limit of 10,000 yuan, with single transactions and daily payments capped at 2,000 yuan and 5,000 yuan, respectively, officials from the Hong Kong Monetary Authority said.

Peer-to-peer transfers will not be allowed at the moment, according to the HKMA.

“By expanding the e-CNY pilot in Hong Kong .. users may now top up their wallets anytime, anywhere without having to open a mainland bank account, thereby facilitating merchant payments in the mainland by Hong Kong residents,” HKMA Chief Eddie Yue said.

Currently, users of other digital yuan wallets such as those operated by Ant Group and Tencent can make payments in the city.

Industrial and Commercial Bank of China, Bank of China Ltd, China Construction Bank Corp and Bank of Communications Co have been selected as e-CNY wallet operators.

Advertisement

The yuan’s use in global finance remains low, though it has shown steady increases.

Continue Reading

Trending

Copyright © GLOBAL TIMES PAKISTAN