Gold Rates Surged By Rs. 700 In India: Awaiting For Inflation Data

The Russia-Ukraine tensions are driving international gold rates to stay bullish. Indian gold prices have surged by around Rs. 700/10 grams for 22 carat gold on March 5. The 22 carat gold prices are quoted at Rs. 48,400/10 grams, and the 24 carat gold rates are quoted at Rs. 52,800/10 grams.

Recently Russia has declared a partial ceasefire for allowing humanitarian corridors out of the Ukrainian cities of Mariupol and Volnovakha. This indicated that the geopolitical tensions within Ukraine can intensify further. In this situation, India has brought back more than 17,000 Indians from Ukraine. However, the uncertain conditions are helping the gold rates to gain in the international markets.
Additionally, the global commodity markets are reacting positively due to the rising inflation rate in the USA. Next week on Thursday, the CPI inflation data will be released in the USA. It can again help the gold rates to gain. Commenting on that, OANDA senior market analyst Edward Moya told Kitco News, "Unfortunately, there are no signs that you are going to see a de-escalation of the war in Ukraine any time soon. As we take a look at the impact that is having on the global economy, you'll see global growth concerns and inflationary pressures become dominant themes."
In January, many investors anticipated that gold rates can drop in March. However, due to the rising inflation rate and Russia-Ukraine tensions gold rates are gaining. Gold is playing as a safe haven during the economic and political uncertainties.
The Comex gold futures surged by 1.81% and were quoted at $1969.50/oz, till last traded. The spot gold prices are quoted at $1973.90/oz, gaining by 1.88%, till last traded. On the other hand, the US dollar index in the spot market stood at 98.05, gaining by 0.33%. In India, the MCX gold in April future quoted at Rs. 52,549/10 grams, gaining by 1.50%, till last traded.