Gold Rates Gained Internationally, Crossed $1900/oz Level

International gold prices have surged significantly today and crossed the $1900/oz level. Similarly, it is being mirrored in the Indian markets. The Russia - Ukraine geopolitical crisis is influencing the global gold markets, and the yellow metal is acting as a safe haven.

Mentioning this issue, Dr. Ravi Singh-Vice President and Head of Research-ShareIndia told media, "Russia - Ukraine crisis is taking over the nerves of the gold traders, which has bounced back again after some profit booking. The rising Inflation rate has also increased the demand for the safe haven appeal. Buy Zone Near - Rs. 50,000 for the target of 50,250, Sell Zone Below - Rs. 49,800 for the target of 49,600."

Along with the above-mentioned geopolitical uncertainties, due to the hiking inflation rate in the USA, gold is proving its strength as a hedge against inflation. Commenting on the upcoming price trend, Florian Grummes, managing director of Midas Touch Consulting told Kitco News,"We are on track for that. It's just a question of time. It could happen this year, maybe next year. If the Fed indeed starts to hike and starts to taper...you see the markets already giving a clear signal, so I don't think they can do it aggressively at all if they do it at all. They probably will roll back rather quickly during the year because end of the year we have midterm elections."

In India, gold rates on February 18 have surged by around Rs. 500-540/10 grams. The 22 carat gold prices are quoted at Rs. 46,300/10 grams, and the 24 carat gold rates are quoted at Rs. 50,510/10 grams. In Chennai and Madurai, gold rates have gained by around Rs. 350/10 grams.

The Comex gold futures fell by 0.40% and were quoted at $1893.10/oz, till last traded. On the earlier day, Comex gold futures closed at $1900.70/oz. The spot gold prices were quoted at $1892.70/oz, falling by 0.33%, till last traded. The US dollar index in the spot market stood at 95.76, falling by 0.04%. However, in India, the MCX gold in April future quoted at Rs. 50,035/10 grams, fell by 0.71%, till last traded.