Gold prices in the national capital rallied by Rs 1,656 to Rs 51,627 per 10 grams on Thursday on the back of safe-haven buying and sharp depreciation of rupee amid the Russia-Ukraine conflict, according to HDFC Securities.
Gold price today at Multi Commodity Exchange (MCX) ascended to its highest levels in more than a year.
The yellow metal had closed at Rs 49,971 per 10 grams in the previous trade.
Silver prices also shot up by Rs 2,350 to Rs 66,267 per kilogram compared with the previous close of Rs 63,917 per kilogram.
On Thursday, the rupee plummeted 109 paise to close at 75.70 against the dollar as Russia announced military operation in Ukraine.
HDFC Securities Senior Analyst (Commodities) Tapan Patel told PTI, “spot prices for 24 carat gold at Delhi surged by Rs 1,656 in line with gains in COMEX gold prices along with rupee depreciation”.
He also said that gold prices rallied on safe-haven buying along with the dollar on geopolitical risk fearing severe sanctions on Russia and possible disruption of supplies of commodities.
Russian President Vladimir Putin on Thursday announced a military operation in Ukraine and warned other countries that any attempt to interfere with the Russian action would lead to “consequences they have never seen”.
In the international markets, gold soared to $1,942 an ounce while silver was also trading higher at $25.07 per ounce.
“Gold prices traded higher with spot gold prices at COMEX rallying 1.80 percent to $1,942 per ounce on Thursday,” Patel said.
MCX gold rate today surged Rs 2,300 to Rs 52,710 per 10 gram while silver jumped Rs 3,512 to Rs 68,097 per kg. In the international spot market, gold price breached its $1925 hurdle and has hit $1950 per ounce levels, around 13 months high, said Rahul Kalantri, VP Commodities, Mehta Equities Ltd. "In international gold price has broken its $1,950 per ounce hurdle and now it may soon go up to $1,980 and then $2,000 per ounce levels."
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities, COMEX gold has risen over 3 percent and tested a high of near $1976/oz, the highest level since January 2021. On MCX, gold has jumped to August 2020 highs as gains in international market are coupled with weaker rupee. Gold has rallied as increased tensions between Russia and Ukraine has increased its safe haven appeal. The metals may continue to trade firm unless there is de-escalation of tensions in the region.
Silver has also jumped over 3 percent and hit a high near $25.6/oz, the highest level since Aug.2021. MCX Silver has breached Rs.68,000 per kg level for the first time since August 2021, Rao said. Silver has benefitted from concurrent gains in gold and industrial metals. Gold has benefitted from safe haven buying while industrial metals are supported by supply risks associated with Russia. Silver along with gold may remain firm unless risk sentiment improves significantly, he added.
Rahul Kalantri, VP Commodities, Mehta Equities Ltd.said, "Crude oil and natural gas futures gained significantly on Thursday as Russia announced its troops entered Ukraine. March crude oil futures were trading at Rs 7,600, up by 10 percent on MCX. Brent oil were at $104.73 a barrel, up by 8.7 percent and WTI at $99.11 up by 8.2 percent. We seen more price appreciation in domestic energy sector because of Rupee weakness against dollar.
Russia is the key supplier of crude oil and natural gas to the global markets. Russia, which is the second-largest producer of crude oil, sells a significant portion to European countries. Nearly one-third of Russian natural gas is being supplied to the European markets.
We advise traders to have wait and watch strategy in crude oil & natural gas as rupee weakness will also play important role in crude oil prices. If WTI crude has close above $100 then will see fresh buying till $104.5 & then $107 else it can again touch to its support level $94, Kalantri added.
