Gold prices rise as dollar, yields drop

Gulf Today Report 

Gold prices surge on Tuesday following the decline in dollar and US bond yields leading to an increase in demand for the metal.

Spot gold was up 0.4% at $1,734.72 per ounce by 04:34 GMT while US gold futures were also up 0.4% at $1,734.80 per ounce.

The dollar slumped to an almost two-week low versus a basket of rival currencies, making gold cheaper for buyers outside the United States. On the other hand, the benchmark US Treasury yields also declined, after a 14-month peak.

READ MORE 

Yellen says US pushing G20 for global minimum corporate tax

Global money market funds surge

Sheraa's S3 set to co-build eight high impact startups

However, data showcasing beyond expectations economic growth of the United States have boosted investors hope for a swift recovery and encouraged them towards riskier assets.

In a note, Stephen Innes, chief global market strategist at financial services firm Axi said, "gold has formed a short-term double bottom but needs to break above $1,750 before it can head higher."

Gold tends to benefit from widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation and currency debasement.