STOCK Dubai gold shopping
Gold's current levels are quite close to the all-time highs set during early August of 2020, when the pandemic was disrupting the global economy. This time, it's the Russia-Ukraine conflict. Image Credit: Ahmed Ramzan/Gulf News

Dubai: Dh8 is all that separates today’s Dubai Gold Rate from its all-time high of Dh235 a gram on August 6, 2020. Today’s gold rate for 22K is at Dh226.50 a gram as gold keeps getting pushed higher by the scale of the conflict between Russia and Ukraine and what this could mean for the global economy’s growth chances.

“Gold sales in the last week are nearly down to what we experienced during the peak of the COVID-19 linked shutdown phase,” said a jewellery retailer here. “Even tourists are hesitant to spend when gold is nearing its August 2020 peak.” (For more updated info on the gold and currency markets, please go to our section.)

Early on Monday, gold started at $2,002 an ounce but then dropped to $1,988 by 8.45am. Jewellery retailers fret that this could see gold pushing towards the $2,032 mark of early August, 2020, which is the highest to date that the safe haven asset has touched ever.

There are those, however, who think gold needn’t go all the way to another record hit. “Gold flirted with $2,000 today on haven-buying flows,” said Jeffrey Halley, Senior Market Analyst at Oanda.

Stock - Jeffrey Halley, Oanda
“I expect it to run into quite heavy selling around $2,000.00 level initially, potentially from option-related barriers,” said Halley.

Hallery throws in a caveat, though. “Once it has cleared $2,000, I expect gold to proceed to $2,100.00 in the sessions ahead this week. Only a sharp retreat by oil will change this outlook.”

And right now, oil looks solid – at just around the $130 a barrel mark. Clearly, 12 days into the Russia-Ukraine situation, global commodities prices are on a wild dance.