Ukrainian soldiers resisted a Russian ultimatum to lay down arms on Sunday in the pulverised port of Mariupol, which Moscow said its forces had almost completely seized in what would be its biggest prize of the nearly two-month war.
Gold futures on MCX jumped 0.73 per cent or Rs 286 to Rs 53,378 per 10 grams. Silver futures were also trading higher by 1.31 per cent or Rs 901 at Rs 69,933 per kg.
Gold posted its second straight weekly gain last week, buoyed by safe-haven demand amid the Ukraine crisis and soaring inflation. Bullion is considered a safe store of value during times of political and economic crisis.
Gold as a safe haven is attractive due to soaring inflation and uncertainty in the Russian-Ukraine war, said Ravi Singh, Vice President and Head of Research, ShareIndia. “As long as the two factors continue to dominate markets sentiment – a scenario for a further uptrend in gold price remains intact. It is a good opportunity to go long on every dips,” he added.
In the spot market, the highest purity gold was sold at Rs 53,220 per 10 grams while silver was priced at Rs 69,316 per kg on Wednesday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have surged almost Rs 1,650 per 10 grams for the last one week, whereas silver has advanced about Rs 3,400 per kg in the same period of review.
Pritam Patnaik, Head – Commodities, Axis Securities said gold prices continued their positive run backed by the worsening geopolitical situation on the Russian – Ukrainian war front.
“Furthermore, there are growth fears in the US owing to hight inflation, leading to a higher interest rate regime, amidst a volatile geopolitical landscape,” he added. “Buy on dips is the favoured strategy for gold.”
Singh from ShareIndia has advised to buy gold above Rs 53,200 for the target of Rs 53,500, whereas traders can short the yellow metal below Rs 53,000 for the target of 52,800.
Spot gold was up 0.5 per cent at $1,984.58 per ounce, hitting its highest since March 14. US gold futures were up 0.7 per cent at $1,987.70.
Spot silver was flat at $25.36 per ounce, platinum was up 0.3 per cent to $968.17 and palladium rose 1.1 per cent at $2,350.68.