Russia-Ukraine tension could push gold towards $2,000

Russia-Ukraine tension could push gold towards $2,000

In the UAE, 24K price could rise to Dh242 per gram in the coming week.

Published: Sun 27 Mar 2022, 8:47 AM

Investors continue to put money in gold as Russia-Ukraine tension still remains high and attempts to reach an agreement has failed which could push yellow metal towards $2,000, say analysts.

Gold remained stayed above $1,950 an ounce and the next resistance level is seen near $1,970 followed by $1,985, says Vijay Valecha, chief investment officer at Century Financial.

The precious metal closed the week at $1,958.38 an ounce. In the UAE, 24K gold prices settled at Dh237.25 per gram while 22K, 21K and 18K closed at Dh222.75, Dh212.5 and Dh182.25 per gram, respectively.

“Support for the gold is seen near $1,915 followed by $1,895. In UAE, 24K gold price is expected to trade between Dh232 and Dh242 in the week ahead,” added Valecha.

“Gold prices rise along with US Treasury yields, indicating that investors are putting their money into gold as an inflation hedge. Although it is ironic for gold prices to rise despite high chances of a 50-bps hike, it may be due to the Fed chairman Jerome Powell’s comment that the economy is strong enough to withstand aggressive interest rate increases,” he