UAE: Gold prices flat, 24K opens at Dh229.75 per gram

DUBAI, TGO: Gold prices were flat on Wednesday, holding near a nine-month high hit in the last session, as safe-haven demand was offset by a rise in Treasury yields following the first wave of US and European sanctions on Russia for sending troops into eastern Ukraine.

Spot gold was trading at $1,898.63 at 9.10am UAE time.

In the UAE, 24K gold prices opened at Dh229.75 per gram on Wednesday morning while 22K, 21K and 18K were trading at Dh215.75, Dh206.0 and Dh176.5 per gram, respectively.

The US, the European Union and Britain announced plans to target banks and elites while Germany halted a major gas pipeline project from Russia, which they say has amassed more than 150,000 troops near Ukraine’s borders. Moscow has denied planning an invasion of Ukraine.

Gold prices spiked to $1,914 an ounce on Wednesday on Ukrainian nerves. However, the US and Europe sanctions announcement sparked a relief rally in risk sentiment, pushing gold to $1898.50 an ounce.

“Gold has support at $1,880 an ounce, with resistance at $1,920, $1,960, and then $2,000 an ounce. The relative strength indicator (RSI) remains very overbought, tempering gold gains for now. However, the topside remains the path of least resistance and gold prices will quickly resolve above $2,000 if Russia’s actions in Ukraine intensify and more Western sanctions follow,” says Jeffrey Halley, senior market analyst at Oanda.