Gold prices rose as safe-haven demand resumed due to geopolitical tensions along with renewed concerns about nuclear threats in the Russia-Ukraine conflict.
According to the All India Bullion Association, gold prices in the national capital on Thursday rose to Rs. 1,400 to Rs. 79,300 per 10 grams was reached. The precious metal of 99.9 percent purity had traded at Rs. 77,900 per 10 gm.
However, on Thursday silver rose to Rs. 93,000 per kg was flat.
Gold price of 99.5 percent purity on Wednesday rose to Rs. 1,400 increased to Rs. 78,900 per 10 grams which was earlier Rs. 77,500 per 10 grams.
Meanwhile, in futures trade on MCX, gold contracts for December delivery traded at Rs. 568 or a rise of 0.75 percent to Rs. 76,602 were traded at 10 grams.
“Gold prices rose as safe-haven demand resumed due to geopolitical tensions, along with renewed concerns about nuclear risks in the Russia-Ukraine conflict. Reports of rising tensions and global unrest lifted gold prices on the Comex,” LKP Securities’ VP of Commodities and Currencies Research analyst Jatin Trivedi said.
Uncertainty surrounding the situation supports a bullish bias for gold. Elevated volatility is expected in the short term due to geopolitical developments, Trivedi added.
Silver contract for December delivery on MCX at Rs. 318 or 0.35 percent to Rs. 90,407 per kg.
Globally, Comex gold futures were up USD 19.80, or 0.74 percent, at USD 2,695.40 an ounce.
“Gold rallied as investors turned to safe havens following the escalation of the crisis between Russia and Ukraine. After a recent strike with US-made long-range missiles, Ukraine deployed UK-made missiles in Russian territory,” said Saumil Gandhi, senior analyst for commodities at HDFC Securities.
Ukraine said on Thursday that Russia had launched an intercontinental ballistic missile overnight targeting the city of Dnipro in the country’s center-east, in what, if confirmed, would be the first time Moscow has used such a missile in combat.
These developments have raised the possibility of a wider crisis, increasing demand for gold as a safe-haven asset.
Silver was also quoted 0.29 percent higher at $31.53 an ounce in Asian market hours.
According to Sharekhan by Praveen Singh – Associate VP, Fundamental Currencies and Commodities, BNP Paribas, traders will be keeping an eye on US macroeconomic data including the Philadelphia Fed’s business conditions, existing home sales and jobless claims.
The data will be released later on Thursday, which, in turn, signals the US Federal Reserve’s policy interest rates.