Gold slips below $1,800; 24K trades at Dh217.75 in Dubai

Staff Report/Dubai
Filed on July 7, 2021 | Last updated on July 7, 2021 at 10.01 am

"A fall in treasury yields is certainly providing some support to gold," said an analyst.

Gold price slipped below $1,800 an ounce but was still trading in positive territory on Wednesday morning, helped by a drop in US Treasury yields.

Spot gold was up 0.13 per cent at $1,798.19 per ounce at 9.15am UAE time.

In the UAE, the Dubai Gold and Jewellery Group data showed 24K trading at Dh217.75 per gram on Wednesday morning, falling from Dh219.25 at the close of the market on Tuesday.

Among the other variants of the precious metals, 22K was trading at Dh204.5 per gram; 21K at Dh195.25 and 18K at Dh167.25 on Wednesday morning,

“A fall in treasury yields is certainly providing some support to gold, whilst we are also seeing some slight weakness in the US dollar during early morning trading, which will also help,” said ING analyst Warren Patterson.

Benchmark 10-year Treasury yields were pinned near their lowest in more than four months. Lower bond yields reduce the opportunity cost of holding non-interest bearing gold.

The dollar index was slightly lower at 92.515 following a 0.4 per cent gain in the previous session.

“I suspect that these (minutes) will just confirm the Fed is becoming relatively more hawkish, so (we) could see gold trading lower as a result,” Patterson said.

Naeem Aslam, chief market analyst at Ava Trade, said lot of that hawkish Fed narrative is already built into the gold price. “Now we may not see a similar kind of intense selloff in the gold price.”

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