Dubai gold prices rise on Thursday: Will they come down again?

Reuters

Dubai - In Dubai, 24K retail gold price rose from Dh203.5 on Wednesday to Dh207.5 on Thursday.

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A Staff Reporter

Published: Thu 1 Apr 2021, 10:13 AM

Last updated: Thu 1 Apr 2021, 10:38 AM

Gold prices in Dubai recovered from a three-week low on Thursday, as the US dollar and Treasury eased after President Joe Biden’s $2 trillion (t) infrastructure push.

In Dubai, 24K retail gold price rose from Dh203.5 on Wednesday to Dh207.5 on Thursday. Similarly, 22K price recovered to Dh194.75, 21K rose to Dh186 and 18K jumped to Dh159.25 on Thursday.

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Spot gold rose 1.78 per cent to $1,714.37 per ounce by 9.44am UAE time globally on Thursday. US gold futures were down 0.1 per cent to $1,713.80 per ounce.

According to Reuters technical analyst Wang Tao, spot gold faces resistance at $1,716 per ounce and it may hover below this level for a day or retreat to $1,691.

"Gold rallied overnight on quarter-end portfolio rebalancing flows, assisted by a weaker US dollar and no fireworks in the US bond market after President Biden released the first details of the infrastructure package," said Jeffrey Halley, senior market analyst, OANDA.

Halley said Biden’s multitrillion-dollar package is reasonably revenue-neutral and meaningless bond issuance than expected. “That allowed bond yields to remain stable, which helped gold move higher over the day," he said.

Gold is seen as a hedge against higher inflation that could follow stimulus measures, but a recent spike in US Treasury yields has weighed on the non-yielding commodity.

waheedabbas@khaleejtimes.com

A Staff Reporter

Published: Thu 1 Apr 2021, 10:13 AM

Last updated: Thu 1 Apr 2021, 10:38 AM

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