Gold-Near 19-Month High Following Russian Oil Import Ban

Following a ban on Russian oil imports by the west, gold hovered at a 19-month high, as rising concerns about inflation and economic growth boosted demand for the safe-haven commodity.

Gold prices soared Wednesday in Indian markets as the Ukraine crisis worsened. Gold futures on the MCX rose 1.8 percent to $53,500 per 10 gram, reflecting robust worldwide rates. In Indian markets, gold reached a record high of 56,200 in August 2020.

In global markets, spot gold was up 1.5 percent to $1,998.37 per ounce after reaching a high of $2,069 earlier in the day, the highest in 18 months. During the Ukraine crisis, there has been a surge in inflows into gold-backed ETFs. The SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, increased 0.4 percent to 1,054.3 tonnes on Friday, the highest since mid-March 2021.

Bullion has climbed by 12 percent in 2022, setting a new high as investors seek a safe haven despite the potential of an inflationary blow to the world economy.

The impact of the Ukraine war and Russian sanctions has resonated throughout the world, sending commodities higher due to supply concerns. The current effort by the United States and the United Kingdom to prohibit Russian oil imports has fueled further concern about rising pricing pressures as the costs of basic materials such as food, metals, and energy rise.