Gold prices on Thursday jumped to their highest levels in 2022 so far as investors sought refuge in safer assets with Russia launching a full-scale attack on Ukraine following weeks of tension. Bullion prices have increased 8% in the month of February as investors weighed the consequences of the prolonged geopolitical risks emanating out of the Russia-Ukraine situation and a subsequent jump in crude oil, which lurched to multi-year high of $100-a-barrel mark on Thursday.

 

Russian forces fired missiles at several Ukrainian cities including capital Kyiv, and landed troops on the eastern European country’s south coast.

 

On Thursday, the price of Gold futures of 10 grams of Bullion for April delivery rose to Rs 51,558, up by Rs 1179.00 or 2.34% as compared to its previous close of Rs 50379 on Wednesday.

 

In global markets, spot gold climbed 1.7% to $1,939.97 per ounce by 0611 GMT, after hitting its best level since January 2021 at $1,948.77. U.S. gold futures rose 1.8% to $1,943.90.

 

Physical gold prices in several Indian cities also surged on Thursday. On Thursday, Price of 10 gram of 22 carat physical gold jumped as much as Rs 850 from yesterday’s levels.

 

In Chennai, 24 carat physical gold retailed for Rs 52,660/10 gram from Rs 48,270 yesterday; in Delhi it increased to Rs 51,110 today from Rs 46,850 on Wednesday and similar levels seen in Mumbai, Bengaluru, Kolkata, and several other cities.

 

Increase in bullion prices with a commensurate near 3% downfall in stocks. IndiaN benchmark indices such as Sensex and Nifty tumbled over 3% on Thursday as investors weighed consequences of geopolitical risks, effect of rising crude oil prices on an already precarious inflation levels on world economy.