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Monday, February 24, 2025

UAE: Gold prices rise in early trade on geopolitical tensions, trade wars

By Vijay Valecha in 'Century in News'

UAE: Gold prices rise in early trade on...

Vijay Valecha, Khaleej Times, February 24, 2025

Gold prices rose half a dirham per gram at the opening of markets in Dubai on Monday. At 9am UAE time, 24K opened higher at Dh354.25 while 22K was trading at Dh329.75 per gram. Among other variants, 21K and 18K rose to Dh316 and Dh271 per gram, respectively.

Saxo Bank said gold hovered near record highs at $2,935 an ounce due to geopolitical tensions, despite the US Federal Reserve’s rate stance. “Concerns grew as US President Donald Trump suggested pulling US support for Ukraine after Russia's 2022 invasion, urging Zelenskiy to negotiate with Russia swiftly,” it said.

Vijay Valecha, chief investment officer, Century Financial, said the ongoing trade war tensions have spiked up the safe-haven demand for gold. Analysts expect the yellow metal to reach $3,000 due to geopolitical tensions. He said the minutes of the Fed’s meeting presented a very hawkish stance; however, despite the same, gold continued its bullish trajectory, mainly owing to the uncertain economic implications of Trump’s proposed policy measures. According to Valecha, the commodity is in a strong uptrend on the hourly chart, supporting the bullish stance.

Source

Khaleej Times