As the Russian and the Ukraine war impacts markers, the gold price in the UAE has dropped. The price of 24-Karat gold in the region was Dh232.75 per gold gram is now down from Dh234.50. The price of 22-karat gold in the UAE has come down from Dh218.75 per gold gram, 21-karat to Dh208.75, and 18-karat to Dh178.75. The prices of gold will also shift from $1965 and, again, $1975 per ounce to the $1,917 to the $1,910 range, as per credible reports.
Kavan Choksi – The prices of gold and will they always be costly?
Kavan Choksi is a business expert in the field of finance and investment. According to him, when it comes to whether gold will be expensive or not, he observes that the dollar index was close to a 3-week high in its previous session, and this made gold costlier for people who were holding other currencies. Besides the above, the cost of opportunity of holding the non-yielding bullion has risen in the USA as its benchmark bond yields of the government reached a 3-year high.
The positive correlation between gold and bonds in the region
Due to the fact that government and gold bonds are regarded as safe-haven assets in the region, he believes that a positive relationship between the two exist- the prices of gold and bonds. Again, there is a possibility of a negative relation between the bond yields and the gold price.
Waiting and buying – Tip for investors
He believes that the world supply of gas and oil has fallen because of the prevailing tensions due to the war, and the prices of oil have increased due to Russian sanctions. This prompted potential investors to purchase gold, driving up its costs. The holding of gold carries a lot of sense for every investor because of the expectation of the sticky inflation and the strength of the dollar.
The buying trends of investors in the market
It is common for investors new to the market to compare the asset classes and select the one with the highest return. Business experts in the field again advise against them doing so. Here, it is not gold or stocks that give you consistent returns. Here, it should be noted that gold and stocks with other asset classes will guide you to invest in a better manner for earning consistent returns.
The prices of gold will rise again, as per business experts in the region
The prices of gold are expected to rise further, and the ideal time for you to buy gold was around six months back. The allocation to gold must be aligned to the needs of asset allocation. Experts in the market advise investors against chasing gold aggressively for returns. Recently, the prices of gold have risen, and business analysts caution that the above does not mean that gold prices will rise.
According to Kavan Choksi, experts in the commodity market, due to several indicating factors, have anticipated a dip in the prices of gold after its recent rise.