HUBBALLI: Inflationary fears, as well as the Russia-Ukraine conflict, pushed gold prices to Rs 55,000 per 10-gram on Wednesday.
The fears of supply shortages due to the Russia-Ukraine conflict along with robust demand have kept prices higher. Sanctions on Russia, which is a major producer of gold, are expected to reduce the supply.
Speaking to Hubballi Times, Amit Jain of Manoj Jewellers in Hubballi said, “Gold rates are increasing every day due to the various statements coming in about the Russia-Ukraine war.
“On Tuesday, the price was 54, 000 per 10 gram in the morning. By evening, it touched to all-time-high 56,200. Customers enquire price over the phone when they visited the shop the price was increased.”
“We are unable to do the business. For the last 15 days, we are very much disturbed due to the sudden changes in the prices. We are not understanding what price we should tell to the customers,” he said.
“Geopolitical tensions, as well as foreign fund outflows from the equity markets, led to a rush for safe-haven investments such as gold,” said Anuj Gupta, Vice President, Research, IIFL Securities.
“Gold prices in international markets may test $2,100 to $2,130 very soon. In the domestic market, it might test Rs 56,000 to Rs 58,000 per 10-gram,” Gupta added.
According to Kshitij Purohit, Lead of Commodities and Currencies at CapitalVia Global Research: “$2,074 is all-time high… If it breaks this level, then expect the next level of $2,100 to $2,150 in the short term.”
