US Inflation And Russia-Ukraine Tensions: Gold Rates Became Extremely Volatile

Inflationary pressures and Russia-Ukraine geopolitical tensions are driving the gold prices in the international markets now. Gold markets are very volatile at present, and waiting for a direction to follow. Yesterday gold rates in the Comex futures reached at $1879/oz level, which is certainly very high compared to the last December-January price range. Today, again the rates plunged marginally. However, the prices are staying much above the psychological high level, which is significant for the bullish analysts. Earlier, bears were expecting an interest rate hike in March 2022, by the US Federal Reserve, and a drop in gold prices. However, the March rate hike is still at the anticipation zone right now. So, the gold market is booming, reflecting a similar trend in the Indian markets.

Indian gold rates, on February 16 have plunged by around Rs. 200-220/10 grams. The 22 carat gold prices are quoted at Rs. 46,200/10 grams, and the 24 carat gold rates are quoted at Rs. 50,400/10 grams.
Dr. Ravi Singh-Vice President and Head of Research-ShareIndia, told the media, "Gold prices are witnessing profit booking amid the growing tensions of possible attacks by Russia in Ukraine. It may go up to 48800 temporarily as the tensions are not easing so gold will ultimately remain in bullish hands for some more time." For Indian markets, he has estimated a Buy Zone Above Rs. 49500 for the target of Rs. 49800, and Sell Zone Below Rs. 49200 for the target of Rs. 48800.
In addition to that, while talking about the surge of gold rates in the global markets, Ian Telfer, former chairman of Goldcorp stated that he is anticipating gold prices to reach $2,400 - $2,500/oz. In an interview, Telfer told Kitco News, "I would say we are at peak gold. I think that anything below $3,000/oz, we have found most of the gold we are going to find, maybe all the gold we are going to find. If you look at the exploration successes over the last 20 years, they have been declining steadily for that period of time and it's not because people have not spent money or they don't want to find gold, it's because, I think, all the deposits that can make money below $3,000 have been found."
Gold rates are quoted differently, daily. Today's gold rates in major Indian cities follow:

The Comex gold futures have fallen by 0.71% and were quoted at $1854.80/oz, till last traded. On the earlier day, Comex gold futures closed at $1868.0/oz. The spot gold prices were quoted at $1857.30/oz, gaining by 0.12%, till last traded. The US dollar index in the spot market stood at 95.91, falling by 0.10%. However, in India, the MCX gold in April future quoted at Rs. 49,354/10 grams, fell by 0.06%, till last traded.