UAE: Gold prices likely to trade sideways in the coming week

UAE: Gold prices likely to trade sideways in the coming week

Precious metal likely to trade sideways in the coming week

Published: Sun 20 Mar 2022, 8:33 AM Last updated: Sun 20 Mar 2022, 8:40 AM

Gold Prices are expected to trade sideways with a support level seen at $1,910 an ounce for the precious metal in the week ahead.

Analysts believe that the yellow metal’s future moves will largely depend on how rapidly the US Federal Reserve pursues further rate hikes, or whether it errs on the side of caution.

Gold prices closed at $1,921.49 per ounce on the weekend. In the UAE, the Dubai Gold and Jewellery Group data showed 24K trading at Dh232.75 per gram, 22K at Dh218.75, 21K at Dh208.75 and 18K at Dh178.75.

Vijay Valecha, chief investment officer at Century Financial, said risk sentiments have taken a hit ever since US Secretary of State Antony Blinken said that Russia may be contemplating a chemical-weapons attack on Ukraine.

“Any further grim developments on the same can spur demand for safe-havens, and risk-sensitive assets will face the heat of souring sentiment again. Meanwhile, initial data compiled by Bloomberg showed an addition of 11 tons to gold-backed exchange-traded funds mid last week with the total holdings in gold-backed ETFs rising for the 14th straight day