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24K gold price likely to go up to Dh217.4 this week in Dubai

Princess Tarfa

According to analysts, US bond rates are expected to see a short-term rebound, which will boost gold prices and it will increase the demand for the yellow metal.

24K gold prices in the UAE are forecast to trade between Dh203.25 and Dh217.50 this week, according to Vijay Valecha, chief investment officer at Century Financial.

The price of 24K gold in Dubai closed at Dh209.75 per gram. Retail gold prices for 22K, 21K, and 18K were Dh197, Dh188, and Dh161 per gram.

On Friday, the price of gold rose 0.1 percent to $1,730.6 an ounce on a global scale. The strength in yellow metal was partly due to the weakening of the US 10-year yield, which is showing signs of restoring its trend last week.

“It's worth remembering that the Treasury sector had its worst quarterly results in more than 40 years, with investors betting on a solid US economic rebound from the recession of Covid-19. The Treasury bond market lost 4.6 % in the first quarter of 2021. It is the worst result since the third quarter of 1980 when it lost 6.8%. So, in the short term, a bond price rally appears possible, which would likely benefit gold prices,” Valecha informed Khaleej Times.

“Investors are likely rediscovering value in today's low bond prices,” he said.

Though gold dealers in India are expecting strong yellow metal demand this week if prices remain stable, the Covid-19 lockdown continues to be a source of concern for the industry.

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