Vijay Valecha , Special to Khaleej Times May 2, 2021
Analysts are bullish about the gold prices this week due to China’s buying prowess and reduced upward pressure on US Treasury yields.
The sharp rise in the 10-year US Treasury yields from the previous week's closing of 1.529 per cent to 1.686 per cent on Thursday pressured precious metal prices last week. On Friday, Treasuries closed at 1.625 per cent.
In Dubai, 24K gold closed at Dh214.25 per gram while 22K, 21K, and 18K were priced at Dh201.25, Dh192.0, and Dh164.75 per gram, respectively, on Friday.
Valecha sees 24K has support near Dh213 per gram and could touch Dh219 this week.
Besides, China is the world's biggest gold consumer, gobbling up hundreds of tonnes of precious metal worth tens of billions of dollars each year.
Reuters reported that about 150 tonnes of gold worth $8.5 billion (b) is likely to be shipped following the green light from Beijing. Two said the gold would be shipped in April and two said it would arrive over April and May.
This will also help keep the precious yellow metal prices buoyant in the near term.