UAE: Gold jumps as Ukraine crisis deepens; 24K rises to Dh231 per gram in Dubai

Gold prices jumped to a near nine month-high on Tuesday morning, after Russia ordered troops into breakaway regions of eastern Ukraine.

Spot gold was up 5.56 per cent at $1,908.48 per ounce at 9.15 am UAE time, after scaling its highest since June 1 at $1,913.89 per ounce earlier.

In the UAE, the precious metal price jumped more than one dirham per gram at the opening of the market. The Dubai Gold and Jewellery Group data showed 24K opening at Dh231.0 per gram, up Dh1.5 per from its Monday’s close of Dh229.5. Among the other variants of the yellow metal, 22K rose to Dh217.0, 21K to Dh207.25 and 18K to Dh177.5 per gram.

Russia on Monday night announced that it would recognise two separatist republics in eastern Ukraine, the first country to do so and that it would send “peacekeeping forces” to those regions. The move escalates tensions between Russia and the West and makes a diplomatic solution to the crisis even more challenging.

The West may impose some sanctions on Russia later today. The US has banned new trade, investment, and financing of the breakaway regions.

“Stagflation or a Russian invasion of Ukraine, gold should be a winner in the coming days and weeks. Initial support should hold at $1,880, while gold looks set to test resistance at $1,920 an ounce sooner, rather than later. That opens $1,960 and then $2,000 an ounce,” Jeffrey Halley, senior market analyst for the Asia Pacific at Oanda.

He said gold testing previous all-time highs near $2,100 an ounce cannot be ruled out.

waheedabbas@khaleejtimes.com

• Dubai