UAE: Gold hits 8-month high as 24K jumps $0.54 per gram amid Russia-Ukraine tension

Gold prices rose to an eight-month high on Tuesday morning as investors moved to safe-haven assets amidst tension between Russia and the West over Ukraine.

Spot gold was up 3.91 per cent at $1,878.60 per ounce at 9.15 am UAE time on Tuesday morning.

In the UAE, the Dubai Gold and Jewellery Group (DGJG) data showed 24K price jumping two dirhams per gram at the opening of the market, trading at Dh227.5. Similarly, the other variants of the metal also jumped on Tuesday morning. The DGJG data showed 22K opening at Dh213.75 per gram, 21K at Dh204.0 and 18K at Dh174.75.

Edward Moya, senior market analyst at Oanda, said gold got a big boost from the possibility of war between Russia and Ukraine.

“But what is rather impressive is that it held onto most of its gains despite the easing of tensions following Russian Foreign Minister Lavrov’s comment that the Russian president Vladimir Putin is ‘all right’ continuing diplomatic work,” he said.

Moya added that the yellow metal is starting to garner strong interest as the need grows for protection against a US Fed policy mistake, geopolitical risks, and growth concerns.

“The $1,880 level should prove to be key resistance for gold, but if that does not hold, bullish momentum could take prices to the $1,900 level,” he added.

Due to the Ukraine crisis, gold is supported through the inflation channel because of higher crude oil prices and through the risk aversion channel because of lower stocks, Stephen Innes, managing partner at SPI Asset Management, told Reuters.

"If we lose that Ukraine impulse, then gold comes off quite quickly," he added.

"The (gold) market seems to be ignoring major central banks right now because investors are lost in the fog of war and it becomes very difficult to have a salient macro or fundamental view in this type of