UAE: Gold could touch $2,000 this month if Russia-Ukraine conflict further escalates

UAE: Gold could touch $2,000 this month if Russia-Ukraine conflict further escalates

24K price in UAE could hit Dh245 per gram this week

Published: Sun 6 Mar 2022, 8:44 AM

Analysts are bullish about the gold and expect the 24K price to touch Dh245 per gram in the coming week as investors have turned risk-averse fearing further escalation in Russia-Ukraine military conflict.

The yellow metal closed at $,1970.67 on Friday, up 1.67 per cent. In the UAE, 24K was trading at Dh239.0 per gram on Sunday. Among the other variants of the precious metal, 22K opened atDh224.5 per gram, 21K at Dh214.25 and 18K at Dh183.5, according to the Dubai Gold and Jewellery Group data.

Commodity analysts said if risk-aversion remains strong due to European conflict, then a $2,000 level can be achieved this month.

Last week’s surge in gold prices was also due to intensifying tensions between Russia and Ukraine, especially after Russia attacked Europe's largest nuclear power station in Ukraine: The Zaporizhzhia Nuclear Power Plant.

“Investors turned risk-averse as radiation risk worries flooded sentiments after a fire was reported on site. In the day ahead, bulls keep an eye for catalysts that may boost the bullion. Any re-escalation will keep investors averse to high-yielding assets, boding well for the shiny metal,” says Vijay Valecha, chief investment