Daily Times

Gold prices gained 0.97 percent this week due to weakening US dollar and 10-year Treasury yields, making it the first weekly gain in four weeks.

Gold in the international market closed at $1,782.30 an ounce after gaining $17.20 in its value as compared to its closing value in the preceding week that was 1765.10.

Meanwhile, the price of 10 grams of yellow metal in Pakistan decreased to Rs90,200 at the weekend. As the international gold market closes late as compared to the local market, closing rates are adjusted on the next day in the local market.

According to analysts, gold is picking up the bid tone in European trading, taking advantage of the retreat in the US Treasury yield and the dollar across the curve. The risk-off action in the European equities, amid rising concerns over the rapid spread of the Delta plus Covid strain, lifts gold’s safe-haven appeal.

Despite the rebound, gold’s upside appears capped around $1794 ahead of the US PCE Inflation data, which shed more light on the inflation picture and the Fed’s next policy move. The same favours gold prices due to its risk-barometer status. Among the key risk catalysts, US stimulus and trade headlines were the major favour to the market sentiment.