UAE: Gold prices flat in early trade; 24K opens at Dh239.25 per gram in Dubai

Gold prices were flat on Thursday morning and prices were set for a second consecutive weekly gain as the Ukraine crisis and broadening inflationary pressures lifted the safe-haven metal's appeal.

Spot gold was trading at $1,974.01 per ounce, down 0.16 per cent at 9.13 am UAE time.

In the UAE, 24K opened at Dh239.25 while 22K, 21K and 18K were trading at Dh224.75, Dh214.5 and Dh183.75 per gram, respectively

The precious metal prices firmed to near a one-month peak on Wednesday evening, as the Russia-Ukraine conflict boosted bullion's safe-haven demand while investors also bought it as a cushion against soaring inflation.

Russian President Vladimir Putin said Moscow would "rhythmically and calmly" continue its operation in Ukraine, and that on-off peace negotiations "have again returned to a dead-end situation for us".

Meanwhile, data showed on Tuesday that US monthly consumer prices surged in March, cementing the case for a 50 basis point interest rate hike from the Federal Reserve next month as it seeks to tighten pandemic-era monetary policy.

Naeem Aslam, chief market analyst at Ava Trade, said gold traders know that inflation isn't going to ease off from its current level overnight.

“The other important point for gold traders is that if inflation has peaked, that means that the future trajectory of the US Federal Reserve’s monetary policy isn't going to be as hawkish as it currently is. This fact is also supporting the current gold price move,” added Aslam.

waheedabbas@khaleejtimes.com

• Dubai