Gold Prices Remain Above $1900 Due to Weaker US Dollar

Published May 31st, 2021 - 01:00 GMT
Gold Prices Remain Above $1900 Due to Weaker US Dollar
The yellow metal gained over 6 per cent in May. (Shutterstock)

Gold prices rose on Monday morning, staying above the $1,900 mark due to weaker US dollar and lower US Treasury yields.

Spot gold was up 0.15 per cent at US$1,907.13 per ounce by 9:03am UAE time.

In the UAE, 24K gold rose to Dh231 on Monday morning from its previous close of Dh230.75.

The other variants of the gold also gained at the start of the week.

According to Dubai Gold and Jewellery Group data, 22K rose from Dh216.75 to Dh217; 21K from Dh206.75 to Dh207; and 18K from Dh177.25 to Dh177.5 per gram.

According to goldprice.org, the precious metal has gained 6.2 per cent in the past 30 days.

Besides the dollar and US Treasury, inflation also continues to weigh on the precious yellow metal’s price.

"Gold is pretty much drawing its strength from inflation fears and some inclination of the yields. The dollar is staying weaker. Gold bulls now have their eyes set on $2,000 and most of the guys are thinking it's going to go quite higher," said Stephen Innes, managing partner at SPI Asset Management.

"On the technical front, a trade above $1,915.60 would, however, signal a resumption on the $1,950 target... and there is strong support at the $1,875 and $1,850 levels," said Phillip Futures, a senior commodities manager at Avtar Sandu.


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