New Delhi: Gold and silver prices today, February 28, surged in Indian markets, tracking fresh developments in Russia-Ukraine crisis. On MCX, gold futures rose 1.5% to ₹50,990 per 10 gram while silver jumped 1.5% to ₹65,869 per kg.
In global markets, gold prices surged today as risk sentiment took a knock after after Western countries slapped harsher sanctions on Russia for invading Ukraine. Gold prices rose more than 1% to $1,909.89 per ounce, extending gains to more than 6% this month. Meanwhile, officials from Ukraine will meet Russian counterparts at the Belarus border as President Vladimir Putin put his country’s nuclear forces on higher alert.
The US and Europe on Saturday they would banish big Russian banks from the main global payments system SWIFT, in their strongest economic sanctions yet.
Meanwhile, Russian central bank has announced it will start buying gold again on the domestic precious metals market. The move comes after the monetary authority and several of the country’s commercial banks were sanctioned. Central bank buying has been a key source of demand for bullion in the past year.
In India, latest tranche of sovereign gold bonds will open for subscription today and close on March 4. The issue price of Sovereign Gold Bond Scheme 2021-22 – Series X has been fixed at ₹5,109 per gram of gold. The RBI issues the bonds on behalf of the Government of India while the minimum permissible investment is 1 gram of gold.
“Currently, gold is supported by international as well as local developments. Gold prices have rallied to more than a year high due to the geopolitical tensions. Historically, gold has attracted investment in times of uncertainty due to its safe-haven nature. The situation in Ukraine has also led to a spike in crude prices. A rally in oil prices put pressure on the INR, thereby making gold more costly,” said Nish Bhatt, Millwood Kane International.
“Moving forward, the development in Ukraine and the Fed action will provide direction to most asset classes. But a higher crude price and inflation in India, subsequent pressure on INR will continue to support gold prices in the short to medium term,” he added.