‘Geopolitical risks, trade wars, and a weak economy have been strong drivers of gold’s recent upward trend,’ said one analyst
Gold prices inched higher at the opening of the markets on the first trading day of the week as global prices remained steady in early trade.
At 9am on Monday, the 24K variant rose to Dh350.75 per gram, up from Dh350.50 per gram at the close of the markets over the weekend.
Among the other variants, 22K, 21K and 18K opened at Dh326.25, Dh313.0 and Dh268.25 per gram, respectively.
Globally, spot gold was trading at $2,910.44 per ounce, up 0.05 per cent.
Vijay Valecha, chief investment officer, Century Financial, said investors are closely monitoring the evolving tariff situation and its potential impact on the US economy and Federal Reserve policy decisions.
“Additionally, concerns have arisen regarding the potential tightening of supplies in London following Trump’s tariff threats. Investors have been observed moving record volumes of the metal to New York warehouses in recent months due to these uncertainties,” he said
Gold support could be seen near the psychological level of $2,900.
Linh Tran, a market analyst at XS.com, said that gold continued to trade sideways as market sentiment remained cautious on geopolitical developments and trade tensions.
“Geopolitical risks, trade wars, and a weak economy have been strong drivers of gold’s recent upward trend. However, these factors now seem to be experiencing delays and uncertainty,” Linh added.
Source: Khaleejtimes
