gold rate today The Multi Commodity Exchange (MCX) climbed to its highest level in over a year. Gold price rose today on MCX from 2,250 52,630 per 10 grams while silver jumped 5% 67,926. In the spot market, the gold price crossed its barrier of $1925 and touched a nearly 13-month high at $1950 an ounce. According to market experts, this sharp rise in the prices of the yellow metal is due to the escalating tensions in the Russia-Ukraine crisis. He said that spot gold price has broken the $1935 an ounce barrier and now it may soon go further towards $1950, $1980 and then $2000 an ounce level.
He said Ukraine declared a state of emergency on Wednesday and told its citizens in Russia to flee, while Moscow began evacuating its Kiev embassy in the latest ominous signs for Ukrainians, following an all-out Russian military offensive. afraid of. Therefore, speculation about Russia attacking Ukraine is high and hence the demand for Save Haven has suddenly moved north.
Speaking on the reason for the sharp jump in gold prices today; Amit Sajeja, vice president of research at Motilal Oswal, said, “Gold has broken its $1925 barrier and has now risen to the level of $1950. Therefore, the next targets for the spot price of gold are $1980 and $2000. This increase in gold prices today can be attributed to the latest developments in the Ukraine-Russia crisis where there is high speculation that Russia will attack Ukraine anytime soon.
Inflation will remain a big concern
Expect a sharp rise in inflation if the Ukraine crisis drags down to severe levels; Anuj Gupta, Vice-President, IIFL Securities, said, “The price of crude oil has touched $100 a barrel and it is likely to reach around $110 a barrel with a rise of about 10 per cent in the global markets. This is expected to boost global inflation. Hope, which has already been reached. An alarming level.”
Rupee vs Dollar
If oil prices continue to rise northwards, the rupee is expected to feel the heat; Amit Sajeja of Motilal Oswal said, “Rupee has appreciated against US dollar despite escalation in Russia Ukraine crisis. Such is the FDI inflows into India and the announcement of sell-buy-swap to US by Reserve Bank of India (RBI). Dollar against Indian Rupee. However, these triggers will not be enough if crude oil prices continue to rise. Hence, prolonged rise in Russia-Ukraine tensions could push gold price to both global and domestic triggers. support may come from.”
Gold Price Outlook
Expecting further rise in gold prices, Anuj Gupta of IIFL Securities said, “Selling in global equity market is also supportive of gold prices as portfolio diversification from equities to gold may lead to the yellow metal moving northwards. MCX But, gold rates are expected to move around. from 52,500 53,000 levels. Those who have bought gold in the recent past are advised to keep the yellow metal on MCX in the short term for this target.”
However, he strongly advised gold buyers to be cautious about the latest developments in the Russia-Ukraine crisis as a single positive development could lead to a sharp decline in the precious yellow metal as well.
Tips for small investors
Russia Speaking on Ukraine Latest News Developments; Vidit Garg, director of MyGoldkart, said: “As of now, as we write, AFP has reported that the Russian President has decided to launch a military operation in Ukraine, which has set the market on fire and has hit a nearly 2-year high for gold.” is level.
Although it is currently a news based market and the role of technical will be very less, but still 1912 will act as a major support while 1956 as resistance.” He advised small traders to stay away from this volatility.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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