UAE: Gold prices rise as Ukraine crisis shows no signs of abatement

Gold prices rose on Monday morning, lifted by safe-haven demand as the Ukraine crisis showed no signs of abatement, although the gains were capped by the US Federal Reserve's plan of aggressive measures to combat inflation.

Spot gold was up 0.44 per cent to $1,927.06 per ounce at 9.10 am UAE time.

The precious metal prices in the UAE rose in line with the increase in global rates when the markets opened on the first day of the week.

The Dubai Gold and Jewellery Group data showed 24K opening at Dh233.5 per gram, up from last week’s close of Dh232.75. Among the other variants of the precious metal, 22K was trading at Dh219.25 per gram, 21K at Dh209.25 and 18K at Dh179.5.

"A little bit of safe-haven flows (are) going into gold today because Ukraine officially rejected the deadline from Russia," said Matt Simpson, senior market analyst at City Index.

Ukraine on Monday rejected Russian calls to surrender the port city of Mariupol, where residents are besieged with little food, water and power and fierce fighting shows little sign of easing.

Jeffrey Halley, senior market analyst, Oanda, said gold has eked out a modest gain to increase to $1,927 an ounce in Asia, but momentum is non-existent, and the downside is clearly the weaker side still.

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“Gold has resistance at $1,950 and $1,960 an ounce, its previous capitulation point. Support lies at $1,918, $1,900, and then $1,880 an ounce. A sustained failure of the latter signals gold’s torment continues and that $1,800 an ounce beckons,” said Halley.

waheedabbas@khaleejtimes.com

• Dubai