24K Dubai gold jumps to $59, heading towards $59.9

Spot gold was trading at $1,792.68 per ounce by 9.15am UAE time

  
Men look at gold jewellery in a shop at the Gold Souq in Dubai, United Arab Emirates March 24, 2018.

Men look at gold jewellery in a shop at the Gold Souq in Dubai, United Arab Emirates March 24, 2018.

REUTERS/Christopher Pike
Gold prices rose to a two-month high on Thursday morning, moving closer to $1,800 threshold due to weakening in the US dollar and falling US Treasury yields.

Spot gold was trading at $1,792.68 per ounce by 9.15am UAE time, up by $13.71 an ounce or 0.77 per cent.

In Dubai, 24K gold was trading at Dh217 per gram in retail on Thursday morning, up from Dh215.75 on Wednesday morning.

Similarly, the other variants of the precious metal also rose with 21K gaining Dh1.25 to Dh204 per gram on Thursday morning.

While 21K and 18K gold prices in Dubai were pegged at Dh194.5 and Dh166.75, respectively.

"What's obviously underpinning the upswing (in gold) is that dynamic in US Treasuries... which is sort of pushing lower in the very short term," said IG Market analyst Kyle Rodda, adding that a drop below 1.5 per cent in yields could help push gold above $1,800 levels.

An improvement in market sentiment overnight and its knock-on effects on the dollar helped gold jump back again and test the top of its recent ranges, Rodda said.

Benchmark 10-year US Treasury yield was pinned below 1.6 per cent, reducing the opportunity cost of holding a non-yielding bullion.

The dollar index held near multi-week lows against most major currencies.

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