UAE: Ukraine crisis to dictate gold prices in coming week, 24K seen trading between Dh232 and Dh225 – News

On Sunday, the gold was buying and selling at $1,897.36 per ounce.

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Contradicting statements from the US and Russia concerning the Ukraine invasion ought to proceed to help gold worth within the coming week and the yellow steel might contact $1,950 additionally, relying on how the geopolitical state of affairs unfolds, say analysts.

The yellow steel struggled to search out acceptance above the $1,900 degree and witnessed a pullback after Russia agreed to fulfill with the US for talks over the Ukraine disaster, assuaging among the geopolitical fears that had spurred demand for the haven asset.

On Sunday, the gold was buying and selling at $1,897.36 per ounce. Within the UAE, the Dubai Gold and Jewelry Group information confirmed 24K buying and selling at Dh230.0 per gram. Whereas 22K, 21K and 18K had been buying and selling at Dh216.0, Dh206.25 and Dh176.75, respectively.

Tensions had been excessive final week because the US elevated its warnings a couple of potential Russian strike on Ukraine, with President Joe Biden suggesting {that a} “false-flag” operation could also be happening. However, Russian officers denied that an invasion of Ukraine was underway, and the Russian Ministry of Protection printed a video exhibiting a logistical unit returning to its base after the completion of drills.

“The contradicting headlines ought to hold a lid on any optimistic transfer within the threat property and help the safe-haven demand. Moreover, inflationary considerations might construct up additional and profit the steel if vitality costs hold rising as a consequence of geopolitical strife. A sustained transfer above $1,900 would deliver the June 2021 peak of the $1,915 degree into focus,” says Vijay Valecha, chief funding officer at Century Monetary.

“The following bullish goal is envisioned at $1,950, the psychological barrier. In the meantime, if the retracement picks up tempo, Tuesday’s excessive of $1,880 might be put to check under which the $1,850 help space might be again on sellers’ radars. Within the UAE, 24k gold worth surged to close Dh230 with subsequent resistance seen close to Dh232 and help close to Dh225,” added Valecha.

Edward Moya, senior market analyst at Oanda, stated expectations are rising for some sort of floor battle after separatist chief Denis Pushilin introduced an evacuation of Japanese Ukraine residents to Russia and following reviews of an explosion within the separatist-held metropolis of Donetsk.

“Gold costs have had fairly a February and may discover key resistance across the $1,930 degree. With Monday being a vacation within the US, which may maintain if Ukraine tensions don’t escalate additional,” added Moya.

waheedabbas@khaleejtimes.com