Buy: 24K Dubai gold jumps to Dh217, heading towards Dh220

Staff Report/Dubai
Filed on April 22, 2021

(KT file)

 Precious yellow metal's prices rise to a two-month high.

Gold prices rose to a two-month high on Thursday morning, moving closer to $1,800 threshold due to weakening in the US dollar and falling US Treasury yields.

Spot gold was trading at $1,792.68 per ounce by 9.15am UAE time, up by $13.71 an ounce or 0.77 per cent.

In Dubai, 24K gold was trading at Dh217 per gram in retail on Thursday morning, up from Dh215.75 on Wednesday morning.

Similarly, the other variants of the precious metal also rose with 21K gaining Dh1.25 to Dh204 per gram on Thursday morning.

While 21K and 18K gold prices in Dubai were pegged at Dh194.5 and Dh166.75, respectively.

"What's obviously underpinning the upswing (in gold) is that dynamic in US Treasuries... which is sort of pushing lower in the very short term," said IG Market analyst Kyle Rodda, adding that a drop below 1.5 per cent in yields could help push gold above $1,800 levels.

An improvement in market sentiment overnight and its knock-on effects on the dollar helped gold jump back again and test the top of its recent ranges, Rodda said.

Benchmark 10-year US Treasury yield was pinned below 1.6 per cent, reducing the opportunity cost of holding a non-yielding bullion.

The dollar index held near multi-week lows against most major currencies.

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