UAE: Gold prices jump Dh1 per gram as G7 plans to ban precious metal imports from Russia

Gold prices rose in the UAE and worldwide on Monday morning as Western nations plan to ban imports of yellow metal from Russia.

Spot gold rose 0.23 per cent to $1,835.31 per ounce by 9.13am UAE time.

In the UAE, 24K gold price rose one dirham to Dh222.25 per gram at the opening of the market on Monday. While 22K, 21K and 18K opened at Dh208.75, Dh199.25 and Dh170.75 per gram, respectively.

Jeffrey Halley, senior market analyst at Oanda, said the gains today have been driven by a G-7 announcement of a formal ban on Russian gold imports.

“In reality, this is a mere rubber-stamping exercise of unofficial policies already in place and is unlikely to meaningfully change the outlook for gold. ​It remains adrift in month-long $1,800 to $1,880 range,” said Halley.

Naeem Aslam, chief market analyst at Ava Trade, said gold prices are likely to be sensitive this week as one of the major development over the weekend at the G-7 meeting was the discussion about the plan to unveil a ban on Russian gold imports.

“The UK believes that the ban will have a profound impact on Kremlin's ability to fund its army in Ukraine. It is important to note here that the Russian rubble, which was badly beaten down when the war started, has only recovered its losses but has become one of the strongest currencies,” said Aslam.