Vijay Valecha, Special to Khaleej Times 30, 2021
Gold prices fell more than one per cent to over a two-week low on Tuesday morning due to the strengthening of the dollar and a surge in US Treasury yields.
The precious yellow metal was trading at $1,707 an ounce at 8.45am UAE time on Tuesday, down 1.44 per cent or $25.24 an ounce.
In Dubai, 24K retail gold price fell to Dh207 on Tuesday morning, as compared to Dh209.25 on Monday, down 1.1 per cent.
Similarly, 22K dropped to Dh1945.5; 21K fell to Dh185.5 and 18K price dipped to Dh159.
Gold price to shine in H2
Analysts predict that the stronger US dollar and US Treasury yields will keep the gold prices under pressure in the first half of 2021 but the yellow metal could shine in the second half of the year.
"We see virtually no scope for noticeably higher prices until mid-year, though gold should be able to make significant gains in the second half of the year," Commerzbank analysts said in their latest note.