Dubai: Gold prices flat; all eyes set on US inflation data

Spot gold was flat at $1,785.58 per ounce at 9.10 am UAE time.

Agencies file
Agencies file

A Staff Reporter

Published: Thu 9 Dec 2021, 9:30 AM

Gold prices were flat on Thursday, as the US dollar and Treasury yields firmed ahead of key inflation data that could provide clues on the Federal Reserve's next policy move.

Spot gold was flat at $1,785.58 per ounce at 9.10 am UAE time, up 0.11 per cent.

In the UAE, 24K gold opened at Dh216.25 per gram on Thursday morning while 22K was trading at Dh203.25, 21K at Dh194.0 and 18K at Dh166.25 per gram.

The dollar index strengthened 0.1 per cent, further weighing on bullion by raising its cost to buyers holding other currencies.

Naeem Aslam, chief market analyst at AVA Trade, said investors should understand that the biggest event of the week for gold is the inflation reading to be released on Friday.

“In anticipation of the data, treasury yields in the US dropped from their recent highs following which gold prices jumped. This is because a decline in treasury yields reduces the opportunity cost of holding the precious metal and makes gold more appealing,” he said.

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