Spot gold was trading at $1,771.62 per ounce, down by 0.2 per cent at 9.15am
Gold prices were trading near a one-week high on Thursday as the US dollar and Treasury yields retreated after inflation data came in line with expectations and reiterated the need for a quicker interest rate hike.
Spot gold was up at $1,827.39 per ounce, up 0.12 per cent at 9.20am UAE time.
In the UAE, 24K prices jumped above Dh121 per gram, trading at Dh121.5 at the opening of the market. The other variants of the precious also rose with 22K trading at Dh208.0 per gram, 21K at Dh198.25 and 18K at Dh170.0.
The consumer price index (CPI) increased 0.5 per cent last month, just above the 0.4 per cent expectation, the Labor Department said on Wednesday. The CPI surged 7.0 per cent in 2021, the biggest year-on-year increase since June 1982 but in line with the forecast of economists polled by Reuters.
Following the inflation reading, the dollar fell to a two-month low, making gold more attractive for overseas investors.
Edwar Moya, senior market analyst at Oanda, said gold prices were unfazed after consumer prices delivered a 7 per cent annual gain, the fastest pace since 1982.
“Gold has been comfortably above the $1,800 level after the 10-year Treasury yield rally stalled at the 1.80 per cent level. Gold seems like it is in a good place as Treasury yields won’t be rallying much higher until financial markets have balance sheet runoff certainty and that won’t happen until at least a couple of more Fed meetings. Balance sheet reduction is the key for the back-end of the Treasury curve and that should mean the move higher in Treasury yields might be tentatively over, which would be great news for bullion,” said Moya.
waheedabbas@khaleejtimes.com
Spot gold was trading at $1,771.62 per ounce, down by 0.2 per cent at 9.15am
Analysts and forex experts caution that the political instability will continue to weigh on the rupee's future and may slow the recovery pace in coming days
Customers are spending more on customisable cold beverages, food like lime-frosted coconut bars
In the previous session, the rupee had closed at 79.06 against the US dollar
Spot gold was up 0.3 per cent at $1,777.20 per ounce
It opened at 79.16 against the US dollar and touched 79.11 in initial deals
Spot gold was trading at $1,760.13 per ounce as of 9.10 am UAE time, down 0.15 per cent
Higher oil prices, month-end importer demand and global recession fears could restrict the gains for the rupee