Gold, Silver Prices Surge On Safe-Haven Demand

Gold and silver futures jumped on Monday, in line with international spot rates.

Gold, Silver Prices Surge On Safe-Haven Demand

Domestic spot gold with a purity of 24 carats opened at Rs 53,590 per 10 grams.

Gold Price In India: Gold and silver futures jumped on Monday, in line with international spot rates. On the Multi Commodity Exchange (MCX), gold futures, due for a June 3 delivery, were last seen 1.04 per cent up at Rs 53,542, compared to the previous close of Rs 52,992. Silver futures, due for a May 5 delivery, were last seen 1.40 per cent higher at Rs 69,995 against the previous close of Rs 69,032.

Domestic spot gold with a purity of 24 carats opened at Rs 53,590 per 10 grams today, and silver at Rs 69,910 per kilogram - both rates excluding GST (goods and services tax), according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).

Foreign Exchange Rates:

Gold prices rose today as the Russia-Ukraine conflict soured risk sentiment and drove investors to the safety of bullion. Spot gold was up 0.53 per cent at $1,985.11 per ounce. U.S. gold futures were up 0.71 per cent at $1,985.

Bullion is considered a safe store of value during geopolitical and economic crisis.

Analyst View:

Ravi Singh, Vice-President and Head of Research, ShareIndia: "Gold as a safe-haven are attractive due to soaring inflation and uncertainty in the Russian-Ukraine war. As long as the two factors continue to dominate markets for sentiment, a scenario for a further uptrend in gold price remains intact. It is a good opportunity to go long on every dip."

He suggested, "Buy Zone near - Rs 53,200 for the target of Rs 53,500. Sell Zone below - Rs 53,000 for the target of Rs 52,800."

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