Gold prices climb as dollar, yields ease - GulfToday

Gold prices climb as dollar, yields ease


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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 that is supporting gold prices by extension." 


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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.




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