Dubai: Gold prices rise for 2nd consecutive day; will it rise further?

Precious yellow metal's price hits over a one-week high

A woman shops for jewellery at a shop in the Gold Souq in Dubai, United Arab Emirates March 24, 2018.

A woman shops for jewellery at a shop in the Gold Souq in Dubai, United Arab Emirates March 24, 2018.

REUTERS/Christopher Pike

Gold prices continued to rise for the second consecutive day on Wednesday, hitting over a one-week high.

The precious yellow metal price was trading at $1,739 per ounce, a rise of $10.67 an ounce, or 0.62 per cent at 9am UAE time.

In Dubai, 24K retail gold price on Wednesday stood at Dh210.75 per gram, while 22K, 21K, and 18K were priced at Dh198.0, Dh188.75, and Dh161.75 per gram, respectively.

The 24K retail opened at Dh210.25 per gram on Tuesday morning, while 22K, 21K, and 18K prices opened at Dh197.5, Dh188.5, and Dh161.5 per gram, respectively, at the same time.

The prices had risen further on Tuesday evening in Dubai as 24K touched Dh211 per gram. While 22K, 21K, and 18K gold was priced at Dh198.25, Dh189.25, and Dh162, respectively.

Gold prices have been lifted temporarily by a steady decline in the dollar index and lower Treasury yields, said Phillip Streible, chief market strategist at Blue Line Futures.

"The rally is not necessarily sustainable... $1,750 I believe is a resistance point," Streible said.

The dollar fell to a near two-week low, making gold cheaper for holders of other currencies, while benchmark US Treasury yields drifted lower.

"Investors believe that we are not going to see another huge run-up in the yields and that has prompted gold to technically rebound," said Bart Melek, head of commodity strategies at TD Securities.

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