Russia-Ukraine crisis boosts gold, crude oil prices
Amid the escalated tensions between Russia-Ukraine, the prices for gold and crude oil saw an accelerated rise on Monday. As global equity indices slid, commodities, including crude oil, surged as geopolitical risks over Ukraine rippled through global markets.
The Brent-indexed crude oil prices crossed $96 per barrel, the highest in seven years. Russia is one of the world’s top producers of crude oil and gold, and any western sanctions against Russia will stiffen the global supply.
Gold prices traded higher with Comex spot gold prices trading at a day’s high near $1,866 per ounce. Gold hit a three-month high on Monday as fears around the Russia-Ukraine conflict boosted bullion’s safe-haven appeal and sparked fears of supply disruption in the palladium market.
The Gold April future contract at MCX was trading over 1.52 percent near Rs.49,859 per 10 grams. Similarly, MCX Silver March futures rose by more than 2 percent at Rs.64,470 per kg while spot silver prices at Comex were trading near $23.92 per ounce in the evening session.
HDFC Securities’ Senior Analyst (Commodities) Tapan Patel said that the gold prices are trading near three-month highs on heightened tension on the Russia-Ukraine standoff.
IIL Securities VP, Research, Anuj Gupta, said: “Gold may test Rs.50,500 per 10-gram levels and silver may test Rs.66,500 per kg level soon. In the international market, gold may test $1,880 levels and silver may test $25 levels.
The geopolitical risk over Russia-Ukraine tension also boosted buying in precious metals after the US warned that Russia could invade Ukraine at any time in the coming week.
[With Inputs from IANS]
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