Indian Gold Prices Jump By Rs. 1000: Fear Of Russia Entering In Ukraine, Geopolitical Tensions

Indian gold rates, on February 12 have jumped by Rs. 1000/10 grams. The 22 carat gold prices are quoted at Rs. 46,800/10 grams, and the 24 carat gold rates are quoted at Rs. 51,050/10 grams. The geopolitical tensions between Russia and Ukraine are triggering the international gold markets at present, and as a safe haven, gold rates spiked significantly in the recent period. The Indian gold rates are directly related to global gold prices because the country imports gold from foreign markets.

Gold is a US Dollar dominated asset class, and whatever the country's authority is thinking about the mentioned geopolitical tension, will impact the gold prices. White House national security adviser Jake Sullivan, the conflict "could begin during the Olympics despite a lot of speculation that it could only happen after...There is a credible prospect that a Russian military action would take place even before the end of the Olympics." Sullivan added, "Any American in Ukraine should leave as soon as possible, and in any event in the next 24 to 48 hours." Russia is entering Ukrainian territory, including its capital.

In addition to that, the US inflation rate has reached 40 years high range, and the US Fed is yet to hike its interest rate in March. At that time, the inflation rate can ease a bit, and gold rates can fall.

Gold rates are quoted differently, daily. Today's gold rates in major Indian cities follow:

The Comex gold futures gained by 0.25% and were quoted at $1840.80/oz, till last traded. On the earlier day, Comex gold futures closed at $1836.20/oz. The spot gold prices were quoted at $1860.00/oz, gained by 1.77%, till last traded. The US dollar index in the spot market stood at 96.01. However, in India, the MCX gold in April future quoted at Rs. 49,102/10 grams, surged by 0.30%, till last traded.