Russia, Ukraine crisis impact: Spike in oil prices to push yellow metal higher
By Team Newsable | First Published Mar 3, 2022, 1:10 PM ISTOn the Multi-Commodity Exchange (MCX), gold contracts were up 0.54 percent at Rs 51,570 for 10 grams at 9.26 am but silver added 0.41 percent at Rs 67,240 a kilogram.
As the animosity between Russia and Ukraine grows to boil, the war has already begun to affect the gold price. On the back of the Ukraine crisis, the gold price went flat on March 3 in the international markets as the downside remains capped by resurfacing global economic growth concerns amid soaring energy prices.
Ukraine’s besieged cities were bracing for more attacks on Thursday, as Russian commanders facing fierce Ukrainian resistance intensified their bombardment of urban areas in a push toward the capital Kyiv.
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On the Multi-Commodity Exchange (MCX), gold contracts were up 0.54 percent at Rs 51,570 for 10 grams at 9.26 am but silver added 0.41 percent at Rs 67,240 a kilogram.
Gold trades higher amid lack of any overtly hawkish comments from Federal Reserve chairman as he expressed support for rate hike while indicating that they are keeping an eye on Russia-Ukraine tensions.
Gold (XAU/USD) is oscillating in a narrow range of $1,924.70-1,933.42, as investors are waiting for the Russia-Ukraine peace talks, which are due on Thursday.
Spot gold was down 0.2% at $1,940.26 per ounce on Wednesday. US gold futures rose 0.3% to $1,949.40.
The precious metal witnessed some significant offers near $1,950 on Wednesday, as investors expected that Russia may prefer a truce now, as its economy has melted down on sanctions from the Western leaders.
Safe haven buying and inflation concerns has also kept prices higher however stability in the equity market has kept a check on the upside. Gold may remain volatile as Russia-Ukraine situation is assessed, however safe-haven buying may keep prices supported, said Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities.
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