Gold Prices Cross Rs 76,000, Global Rates Spike Amid Geo-Political Tension

Gold prices today stood Rs 76,330, as of 8:40 a.m., according to the India Bullion Association. Prices have seen a sharp recovery since Tuesday as the demand for the commodity has risen. Prices in the global and the domestic markets have both rebounded from lows.

Now over the Rs 76,000 mark, global cues have pushed the prices off the monthly low due to escalations in geo-political tensions. The escalation in the Russia-Ukraine conflict advanced with action from Russia. Essentially, the possibility of further movements from these countries indicates a stronger conflict.

This has pushed investors to go back to the safe-play investments. The movement to the yellow metal was strong as global and domestic prices saw a steep climb on Tuesday. The developments pushed gold prices to $2,630 an ounce in the global market. Post the US elections, equity had taken preference over gold as there was a certain level of de-escalation in tensions and uncertainties.

The futures prices for Dec. 5 were at Rs 75,985, according to the Multi-Commodity Exchange. The slip in demand, paired with a stronger dollar pushed prices even lower in both global and domestic markets. The prices had fallen below the record lows of the previous months in the domestic markets.

The global rates stood at $2,656, according to the World Gold Council. Demand for gold has risen as possibility of an escalation in the Russia-Ukraine conflict looms. Prices of the commodity have seen a steady climb since Tuesday.

Silver prices were at Rs 90,370 as of 8:40 a.m. The futures for Dec. 5 were at Rs 89,959, according to the Multi Commodity Exchange.