On Wednesday, gold prices soared as the tension between Russia and Ukraine heightened, underlining safe haven demand.
Bullion futures for December delivery increased by 0.14% to $2,634.80 per troy ounce on November 20’s Asian afternoon trading.
Based on reports, the gains in the commodity’s cost were prompted by Moscow’s nuclear threat, which put the Russia and Ukraine war in focus.
This week, the yellow metal made a strong recovery from two-month lows after gaining support from the US dollar’s slight weakness. However, the buck stabilized after recent losses early today, restricting the surge in gold prices.
Nevertheless, the conflict between Russia and Ukraine boosted bullion as it is considered a hedge against uncertainty. In connection with this, Moscow reduced the nuclear retaliation threshold over Ukrainian attacks.
Prior to this, the Kremlin raised a warning about an alarming escalation in the dispute between the two countries. It emphasized that this could become a possibility after the US reportedly authorized Kyiv’s use of long-range missiles.
According to Foreign Minister Sergei Lavrov, Russia will do everything it can to prevent a nuclear war from occurring. Yet, hostilities with Ukraine continued, with both nations launching severe attacks against each other in the past week.
India Logs Gold Rally Over Global Market Trend
As revealed by data, India reported a ₹600 ($7.11) rise to ₹78,050.00 ($924.91) per 10.00 grams in gold prices in the national capital.
In line with this, precious metals with 99.00% purity settled at ₹77,450.00 ($917.80) for every 10.00 grams. Correspondingly, the advancements are credited to the boosted buying of local jewelers and retailers, which extended demand.
At the same time, gold of 99.50% purity is priced at ₹77, 650.00 ($920.17) per 10.00 grams, underscoring a ₹600.00 ($7.11) spike. This has previously closed at ₹77,050.00 ($913.06) in the earlier market session.
According to the All India Sarafa Association, the bullion gains are generated by a favorable trend in the world market.
