Heightened tensions between Russia-Ukraine accelerated gold and crude oil prices 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 days high near $1,866 per ounce.
The Gold April future contract at MCX was trading over 1.52 per cent near Rs 49,859 per 10 grams. Similarly, MCX Silver March futures rose by more than 2 per cent at Rs 64,470 per kg while spot silver prices at Comex were trading near $23.92 per ounce in the evening session.
"Gold prices are trading near three month highs on heightened tension on Russia-Ukraine stand-off," HDFC Securities' Senior Analyst (Commodities) Tapan Patel ssaid.
"The geopolitical risk over Russia-Ukraine tension also boosted buying in precious metals after US warned that Russia could invade Ukraine at any time in coming week."
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."
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