Dubai gold prices rise as treasury yields cool-off
Dubai: Gold prices climbed overnight after strong demand at a 30-year US Treasury auction pulled long-dated yields back from their highest levels in more than two decades. The metal gained over 1 per cent to trade near $4,180 an ounce. It had touched a two-month low earlier this week. Lower Treasury prices drew buyers to Thursday’s 30-year sale, which pushed yields down across maturities. That…
Dubai's gold prices surged overnight following robust demand at a significant US Treasury auction, which pushed long-term yields down from their two-decade highs. The precious metal experienced an increase of more than 1 percent, trading near $4,180 per ounce, having previously hit a two-month low. Lower Treasury prices attracted investors to the 30-year sale, easing the pressure on gold, an asset that yields no interest.
In the UAE, prices rose by approximately Dh7 per gram, with 24 karat gold climbing above Dh500 per gram. Currently, gold is trading at Dh504.50, up from Dh497.75 on October 8. Meanwhile, 22- karat and 18 karat gold also increased to Dh467 and Dh384 per gram, respectively. Analysts attribute the rebound to reduced pressure in the US Treasury market.
High yields, oil prices, and a stronger dollar had previously weighed on gold. Traders anticipate US borrowing costs to stay steady for the remainder of the month and rise over the medium term.
Written by urgent.news from Gulf News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
