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Dubai gold prices drop; 24K slips below Dh230

reporters@khaleejtimes.com Filed on June 2, 2021
Photo: ANI

A rise in US Treasury yields is weighing on the precious metal.


Gold prices on Wednesday fell below $1,900 an ounce as rise in US Treasury yields weighed on the precious metal.

Spot gold was down 0.13 per cent at $1,896.35 per ounce at 9.15am UAE time.

The precious metal had hit $1,916.4 an ounce on Tuesday, its highest level since January 8.

In the UAE, 24K retail gold price fell below Dh230 on Wednesday morning, trading at Dh229.75, the Dubai Gold and Jewellery Group data showed.

Meanwhile, 22K, 21K and 18K were trading at Dh215.75, Dh205.75 and Dh176.5 per gram respectively.

Ipek Ozkardeskaya, senior analyst at Swissquote, said the rising inflation is a boon for gold prices, and the yellow metal consolidates above the $1,900 per ounce. “But for the gold rally to maintain its actual speed, the US yields should remain subdued,” he said.

“On one hand, Fed chairman Jay Powell and the Fed officials insist that the inflation peak shouldn’t last long. On the other hand, investors are scratching their heads on what would magically ease the actual inflationary pressures. Commodity prices soaring, oil joining the bull party, chip shortages, slow global logistics, and improved economic activity can only boost consumer prices,” he said.

The analyst added, “Therefore, there is a chance that, at some point, we start seeing a significant rise in the US yields. It’s just a matter of time before we see the 10-year yield jump past the two per cent level. If that happens, we should see the gold rally fading from the actual levels, despite rising inflation expectations."

waheedabbas@khaleejtimes.com

Staff Reporter





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