24K prices had rocketed to Dh249.75 per gram on Tuesday evening in the UAE.
Agencies file
Gold prices were trading close to a 19-month peak hit in the last session, as a stronger dollar and higher Treasury yields countered pressure from safe-haven demand stemming from the Ukraine crisis.
Spot gold was trading at $2,056.95 per ounce at 9.20am UAE time, up by 0.21 per cent. It had climbed to $2,069.89 in the previous session, a whisker away from its record $2,072.49 scaled in August 2020.
In the UAE, 24K gold price opened at Dh248.75 per gram on Wednesday morning as compared to Dh241.25 per gram on Tuesday morning. The 24K prices had rocketed to Dh249.75 per gram on Tuesday evening in the UAE as investors rushed to safe-haven metal amidst geopolitical uncertainty.
“Geopolitical catalysts are the main drivers behind gold, and once the political skies are clear, I foresee gold prices plunging quickly back to the $1,800 levels,” said Margaret Yang, a strategist at DailyFX.
Jeffrey Halley, senior market analyst at Oanda, said stagflation and gold are better bedfellows than anything you will read in 50 Shades of Grey, and once gold comprehensively broke $2,000, the rally accelerated sharply as expected.
ALSO READ:
The stagflationary factors that are so supportive of gold are persisting and will remain so. Gold is now very overbought on the technical indicators and is vulnerable to a corrective move lower. That should be limited to the $2,000 an ounce region and once resistance at $2,070 is cleared, we should see a test and rally through $2,100.00 an ounce. A series of all-time highs beckons for gold, although, it will not be in a straight line,” said Halley.
waheedabbas@khaleejtimes.com
Got an interesting story to tell in the UAE? We want to hear all about it. Write to the nation's best reporting team, as we cover the emirates like no one else.