Dubai gold prices rise on stronger US data

J&J vaccine concerns also list precious metal price.

  
People walk in front of a gold shop in Gold Souq in Dubai, United Arab Emirates, December 30, 2018.

People walk in front of a gold shop in Gold Souq in Dubai, United Arab Emirates, December 30, 2018.

REUTERS/ Hamad I Mohammed

Gold prices in Dubai and worldwide rose on Wednesday morning as a bigger-than-expected rise in US inflation boosted bullion's appeal as a hedge and weighed on the dollar and Treasury yields.

Global spot gold prices rose 0.6 per cent to $1,743 per ounce by 9.15am UAE time, while US gold futures were steady at $1,747.40 per ounce.

Dubai Gold and Jewellery Group data showed that 24K retail gold price rose to Dh211.25 per gram on Wednesday morning as compared to Dh210.50 on Tuesday morning. Meanwhile, 22K, 21K and 18K prices rose to Dh198.25, Dh189.25 and Dh162.25, respectively.

Consumer prices in the US soared by the highest in more than 8 1/2 years in March, setting off what most economists expect to be a fleeting spell of higher inflation.

The US dollar also fell to three-week lows, making gold cheaper for holders of other currencies, while benchmark 10-year Treasury yields also inched down.

Concerns posed by a suggestion of US health officials to delay the use of Johnson & Johnson's Covid-19 vaccine also supported safe-haven gold.

waheedabbas@khaleejtimes.com

Staff Reporter

 

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