Gold prices drop after Russia-Ukraine ceasefire talks

Spot gold was trading at $1,905.5 per ounce at 9.30am UAE time, down 0.18%.

Dubai, TGO: Gold prices eased on Tuesday after strong performances in the past few sessions, as Russian and Ukrainian officials began ceasefire talks and Western countries ramped up sanctions against Moscow, dampening the demand for safe-haven assets.

Spot gold was trading at $1,905.5 per ounce at 9.30 am UAE time, down 0.18 per cent.

In the UAE, the 24K price fell one and a half dirham at the opening of the market to Dh230.75 per gram from Monday’s close of Dh232.25 per gram. While 22K, 21K and 18K opened at Dh216.75, Dh207.0 and Dh177.25 per gram, respectively, on Tuesday morning.

Ceasefire talks between Russian and Ukrainian officials began on the Belarusian border as Russia faced deepening economic isolation four days after attacking Ukraine.

Gold, often used as a safe haven during times of political and financial uncertainty, has risen about 6.5 per cent in February, having soared to an 18-month high of $1,973.96 last week.

Vijay Valecha, chief investment officer at Century Financial, said the bullion is facing resistance at $1,915 as it aims to reclaim $1,930 levels again, which may be tough to breach as the king dollar is likely to buoy on hawkish news.

“On the flip side, $1,878 is the first line of defense for the bullion before it can retest weekly lows of $1,844. In the UAE, 24K gold price is likely to trade between Dh222 and Dh232 in the days ahead,” he added.