Gold prices rise on decline in US yields, dollar
Picture used for illustrative purpose. File
Gulf Today Report
Gold prices jumped on Thursday as soft US Inflation data capped increase in Treasury yields and the dollar.
Spot gold gained 0.5% to $1,734.36 per ounce by 07:15 GMT while US gold futures climbed 0.5% to $1,730.40.
READ MORE
UAE and Africa to boost trade ties through export credit alliance
General Electric, AerCap join air leasing businesses in $30b deal
IG Market analyst Kyle Rodda said, "we got a little bit of a shot in the arm for gold when the CPI (consumer price index) number came in a little bit softer... the dollar surge abated and yields stopped climbing, that's been a positive driver for gold."
The yields have soared recently, threatening gold’s status as a shield against inflation.
"Gold's trend is still to the downside. We continue to see real yields pushing higher, driven by the optimism around economic recovery, as well as expectations that at some point... central banks will have to unwind policy support," Rodda cautioned.
