Gold prices hit $2000 per ounce on Monday at the international markets for the first time since August 2020 as investors flocked to the yellow metal amid the worsening crisis in Ukraine. Prices, however, fell to around $1963 per ounce later in the day.
Closer home, in the intraday trading on MCX, gold reached a high of Rs 54,010 per 10 gram before a decline in the later part of the day. In the bullion market in Calcutta, 24 carat gold was at Rs 54,150 per 10 gram, up from Rs 53,100 per 10 gram on Saturday.
Market analysts estimated prices in the domestic front to remain in the range of Rs 52,900-54,000 in the near term.
“Investors are flocking to gold, while MCX Gold gained nearly 2 per cent, globally it crossed $2,000/oz. Gold is a safe haven for investors, historically it attracts funds in times of uncertainty,” said Nish Bhatt, founder & CEO, Millwood Kane International.
“Over the weekend news of strikes by Russia and retaliation by Ukraine influenced market participants to move out of riskier assets,” said Navneet Damani, senior VP – commodities research, Motilal Oswal Financial Services.
“Broader trend on COMEX could be in the range of $1940- 2040 and in India prices could hover in the range of Rs 52,900 to Rs 54,000,” Damani said.
Meanwhile, palladium eased off a record high on Monday after Russian and Ukrainian officials held a third round of ceasefire talks, prompting some investors to lock in profits from a blistering rally. Prices have fallen more than $500 since scaling an all-time of $3,440.76. Russia accounts for 40 per cent of global production of palladium, used by auto makers in catalytic converters to curb emissions.
