Prices of Gold amidst ensuing Ukraine-Russia conflict

April futures traded at Rs 294, a 0.6% increase for Rs 51,5888 per 10 grams. Worldwide, the Gold prices were flat as there was an improved appetite for risk-taking. It comes after the U.S. Federal Reserve Chairman tried to calm the situation regarding increasing interest rates and offsetting demands for safe-havens due to the Ukraine-Russia war.

Where will gold prices go amidst Russia-Ukraine War

April futures traded at Rs 294, a 0.6% increase for Rs 51,5888 per 10 grams. Worldwide, the Gold prices were flat as there was an improved appetite for risk-taking. It comes after the U.S. Federal Reserve Chairman tried to calm the situation regarding increasing interest rates and offsetting demands for safe-havens due to the Ukraine-Russia war. 

Spot gold traded at $1,917.18 for an ounce, and U.S. Gold futures rose by 0.4% to $1,929.90. 

Gold Trade

Non-Agro Fundamental Research, Anand Rathi Shares & Stock Brokers - Manager, Jigar Trivedi 

Spot Gold ended lower at $1,928.5 per ounce yesterday, taking the loss of about $16 or 0.85%. This comes as a result of Federal Reserve Chair Jerome Powell backing a rise in interest rates by a quarter-point. He has prioritized a fight against inflation and the risks associated with the Russia-Ukraine conflict on the economy. However, the overall tone is bullish even after the worsening geopolitical risk. This is the biggest attack in Europe which led to 870,000+ people fleeing and led to many sanctions by the West on Russia. 

Jerome Powell said that the interest rates will rise slowly starting from March but can take a quicker turn if the inflation does not cool down. MCX Gold April is expected to rise to Rs. 51, 600 for 10 grams. Jerome Powell will be appearing before Senate Banking Committee for his second day on the semi-annual congressional testimony. 

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Commodity & Currency Analyst, Tradebulls Security, Bhavik Patel 

Jerome Powell's support for the interest rate hike saw Gold prices pull back. The result was that investors chose U.S. Equity markets despite the crude oil traded above $112. It feels like Gold will be on rest mode before turning upwards again. The next round of talks between Ukraine and Russia is upcoming, and no one expects any breakthrough. We will be bullish when it comes to Gold even though it might be cautiously. Gold has recently seen an upswing, so any further upswing might be limited. 

We do not suggest shorting and booking a stop loss at 50500 with a target of 52000 while buying at 51000. 

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Senior Analyst - Commodities, HDFC Securities, Tapan Patel

COMEX Spot Gold prices traded at $1929 for an ounce in the morning. Gold prices were trading firmly. A half a percent increase in MCX Gold April Futures saw the mark of Rs. 51583 for 10 grams. U.S. bond yields and a strong dollar has not been able to contain the Gold prices, and they have been trading strongly. The Chairman of the US FED backs a quarter-point interest hike in March. The premium risk in Gold might stay up due to worries of inflation due to the Ukraine-Russia conflict. There are expectations that Gold will trade sideways or upwards in the near term. 

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Sr. Vice President - Commodity & Currency Research, Motilal Oswal  Financial Services, Navneet Damani 

Because of the statements made by Mr. Powell, increase in the bond yields, and positive economic data, gold prices cooled off from levels of $1950. There was a reaction in the market after Mr. Powell's statement on the backing of the increase in interest rates by a quarter base points. It came as there were tensions due to the Ukraine-Russia conflict. Russia has bombarded Ukraine and has made a waste out of the cities and infrastructure. 

Russia has also set up a fierce aerial assault on Kharkiv while continuing to attack from the north-west and north. There might be another meeting between the two countries to try and control the situation. COMEX's broader trend could be $1915 to $1975, while the prices in India could be around Rs. 51,220 to Rs. 51,950. 

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