Geopolitical tensions tend to give the yellow metal a boost and this can be seen very well on the current horse with gold prices rallying towards $2000 an ounce. At the time of this writing, around 8:05 a.m. (IST) or 9:33 p.m. PT, the price of gold was up 0.87% to $1,990. According to Kitco, this leads to gold gains of more than 10% in one month.
Amid the war, gold’s appeal as a safe haven drove its price to its highest level since August 2020.
Gold Price In India Retail Markets
India imports most of its gold requirements and therefore with the depreciation of national unity, gold becomes more expensive. Additionally, gold rates internationally influence rates in Indian markets, similarly, gold prices in Mumbai for 24 karat gold are selling at Rs. 52,800 per 10g. Similarly, on the MCX, April gold futures settled at Rs. 700 per 10g on Friday evening.
Gold price prediction by Goldman Sachs
Amid sanctions on Russia for a full-fledged war on Ukraine, global investment bankers have raised their forecasts for various commodity prices. Similarly, gold which is considered a safe-haven asset is also expected to see a bigger rally, Goldman said. “The recent escalation with Russia creates clear stagflationary risks for the wider economy, driven by rising energy prices, which reinforce our belief in higher gold prices in the months ahead. and our price target of $2,150/toz (troy ounce),” Goldman said.
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Article first published: Monday, March 7, 2022, 9:51 a.m. [IST]