Due to the war in Europe, upraised inflation and the risk of a US recession stimulated demand for the sanctum asset, Gold increased to a 5-week high. After setting a limit on a second weekly gain, the precious metal climbed as much as 1% following hikes in oil and natural gas.
The feasibility of a de facto European Union embargo on Russian gas and the intimidating mark of some restraints on crude in Europe’s following sanctions package have strengthened both commodities. It is also a reason for escalated prices of raw materials, fuelling demand for Gold as a cushion against fast-track inflation.
Bouncing back an accrual in international precious metal prices including the rupee decline, Mumbai Gold rallied Rs 400 to reach Rs 53,400 per 10 gms. However, in the earlier trade, Gold had finished at Rs 53,000 and Silver too hiked for Rs 993 to Rs 69,932 per kg from Rs 68,939 per kg.
An official from HDFC Securities, Dilip Parmar said, “Gold rates traded higher with spot gold prices at Comex trading 1% up at $1,993 per ounce on Monday. Gold prices rallied to a one-month high on global market uncertainty over Ukraine war which led to safe-haven buying.”