The geo-political tensions tend to give the yellow metal a lift and this is very well seen at the current junction with gold prices rallying to $2000 an ounce. Last at the time of writing this copy at around 8:05 am (IST) or 21:33 NY time, gold prices were up 0.87% at $1990. As per Kitco, this leads to an over 10% gains in gold in a month.
Amid the war, gold's safe haven appeal has boosted its price to its highest since August 2020.
Gold prices in retail markets in India
India imports most of its gold requirements and hence with the depreciation of the domestic unit as it is gold turns costlier. Further, gold rates internationally influence rates in Indian markets, likewise, gold prices in Mumbai for 24 K gold is retailing at Rs. 52800 per 10 gm. Likewise, on the MCX, gold April futures settled over Rs. 700 per 10 gm on Friday evening.
Gold price forecast by Goldman Sachs
Amid sanctions on Russia for a full-fledged war against Ukraine, global investment banker raised their forecasts for various commodity prices. Likewise, gold that is viewed as a safe haven asset is also due for a bigger rally said Goldman. "The recent escalation with Russia creates clear stagflationary risks to the broader economy, driven by higher energy prices, which reinforce our conviction in higher gold prices in coming months and our $2,150/toz (troy ounce) price target," Goldman said.