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Gulf Today Report

Gold rose on Tuesday due to a weak dollar and US Treasury yields easing, also concerns about inflation has uplifted bullion’s appeal.

Spot gold rose 0.2% to $1,812.06 per ounce by 05:20 GMT while US gold futures gained 0.2% to $1,811.30.

IG market analyst Kyle Rodda said, "one of the few assets that is more out of favour than gold at the moment is the dollar...so that is supporting gold prices by extension." 

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Gold prices inch higher as dollar declines

The decline in dollars has made gold affordable for holders of other currencies.

Benchmark US Treasury yields fell on Monday, affecting the opportunity cost of holding non-yielding bullion.

Gold serves as a shield against inflation, it jumped by 1.5% due to worries of rising inflation dragging global equities lower.

Gold was "well supported throughout the pandemic as investors sought a haven for funds. But the tide is turning, as interest rates start to rise and investors rekindle their love of bonds," ANZ analysts said in a note.