Safe haven demand takes gold prices to $2k
Russia, major producer of yellow metal, expected to reduce supply; Gold contracts for April delivery on MCX traded higher by Rs1,161 or 2.21% to Rs53,720/10gm; Spot gold may test $2,050 and Silver $27 level very soon
image for illustrative purpose
Gold Rush
- Gold price in March so far rose over $40
- Russia-Ukraine war creating panic among investors
- Uncertainty creating more demand for bullion
- Gold jumps Rs1,298 to Rs53,784/10gm
- Silver zooms Rs1,910 to Rs70,910/kg
New Delhi: Inflationary fears triggered a rush for safe haven investments during the ongoing market volatility that pushed up the global gold price to $2,000 per ounce on Monday. Accordingly, the fears of supply shortages due to the Russian-Ukrainian conflict along with robust demand have kept prices higher. Besides, sanctions on Russia, which is a major producer of Gold, are expected to reduce the supply.
Gold in the national capital on Monday rallied by Rs 1,298 to Rs 53,784 per 10 gram in line with strong international precious metal prices and sharp rupee depreciation, according to HDFC Securities. The yellow metal had in the previous trade finished at Rs 52,486 per 10 grams. Silver also jumped Rs 1,910 to Rs 70,977 per kg, from Rs 69,067 per kg in the previous trade.
The rupee tanked 84 paise to close at its life-time low of 77.01 (provisional) against the US dollar on Monday as intensifying geopolitical risks due to the Russia-Ukraine conflict pushed investors to safe haven assets. In the international market, gold was trading with gains at $1,996 an ounce and silver was flat at $25.81 an ounce. "Gold prices traded higher with spot gold prices at COMEX trading 1.31 per cent up at $1,996 per ounce on Monday. "Gold prices rallied above $2,000 per ounce on Monday trading on escalated tension between Russia and Ukraine," said Tapan Patel, senior analyst (commodities), HDFC Securities.
"Gold has risen above $2,000 an ounce on increased demand for safe-haven assets as investors assess the geopolitical and economic consequences of Russia's invasion of Ukraine," said Kshitij Purohit, Lead of Commodities and Currencies CapitalVia Global Research.
