Gold rush: Russia-Ukraine conflict to push global gold prices to $2,000

"Gold rush: Russia-Ukraine conflict to push global gold prices to $2,000" - March 5th, 2022:

https://www.business-standard.com/article/international/gold-rush-russia-ukraine-conflict-to-push-global-gold-prices-to-2-000-122030500477_1.html

Rush for safe haven investments during the ongoing market volatility triggered by Russian-Ukrainian conflict is expected to push globalgold priceshigher.

Accordingly, the fears of supply shortages along with robust demand has kept prices higher.

Besides, sanctions on Russia which is a major producer of Gold is expected to reduce supply.

Last week, MCXgold pricesincreased sharply by 4.66 per cent to Rs 52,559 levels.

Besides, 'Spot Gold' prices increased by 4.30 per cent to $1,970.35 per ounce.

Notably,gold priceshave increased by more than $40, accelerating a well-defined upward trend that began in the first week of March.

"Geopolitical tension, sanctions over Russia as well as sell off in equitymarketsand depreciation in currency will increase Gold demand," said IIFL Securities VP, Research, Anuj Gupta.

"We expect it to reach $2,000 ininternationalmarket and Rs 54,000 on MCX in the short run."

According to Tapan Patel, Senior Analyst (Commodities), HDFC Securities: "Gold prices are hovering near the resistance levels of $1,970 per ounce reporting the biggest weekly gain in the last two years. The geopolitical risk premium over the Russia-Ukraine conflict and global inflation worries may continue to boost buying in gold despite the Fed policy change.

"The global supply shock in commodities may keep inflation levels high with crude oil trading above $100 per barrel. We may see spot COMEX gold prices nearing $2,050 per ounce in the short term while on the domestic front Rs 53,800 can be the resistance level."

In addition, Kshitij Purohit, Lead of Commodities and Currencies CapitalVia Global Research, said: "Gold's influence on the global economy has been amplified by the synergistic effect of both geopolitical instability and existing inflationary pressures. Gold prices have risen to their highest level since August 2020.