Monday, February 21, 2022
Zawya - UAE: Ukraine crisis to dictate gold prices in coming week, 24K seen trading between $63 and $61
Contradicting statements from the US and Russia about the Ukraine invasion should continue to support gold price in the coming week and the yellow metal could touch $1,950 also, depending on how the geopolitical situation unfolds, say analysts.
The yellow metal struggled to find acceptance above the $1,900 level and witnessed a pullback after Russia agreed to meet with the US for talks over the Ukraine crisis, alleviating some of the geopolitical fears that had spurred demand for the haven asset.
On Sunday, the gold was trading at $1,897.36 per ounce. In the UAE, the Dubai Gold and Jewellery Group data showed 24K trading at Dh230.0 per gram. While 22K, 21K and 18K were trading at Dh216.0, Dh206.25 and Dh176.75, respectively.
Tensions were high last week as the US increased its warnings about a possible Russian strike on Ukraine, with President Joe Biden suggesting that a "false-flag" operation may be taking place. On the other hand, Russian officials denied that an invasion of Ukraine was underway, and the Russian Ministry of Defense published a video showing a logistical unit returning to its base after the completion of drills.
Edward Moya, senior market analyst at Oanda, said expectations are growing for some type of ground conflict after separatist leader Denis Pushilin announced an evacuation of Eastern Ukraine residents to Russia and following reports of an explosion in the separatist-held city of Donetsk.
“Gold prices have had quite a February and should find key resistance around the $1,930 level. With Monday being a holiday in the US, that might hold if Ukraine tensions do not escalate further,” added Moya.Source: