Geopolitical tensions, global inflation to put shine on gold

Keep an eye on real interest rates: if they move up, gold may lose its sparkle

Gold closed at Rs 49,379 per 10 grams on February 15. It is up 3 per cent over the past one month and 6.2 per cent over the past six months. In the international market, gold touched $1,854 per ounce on Wednesday. 

Russia-Ukraine crisis driving price up

Several factors have driven gold’s price up.

Naveen Mathur, director-commodities and currencies, Anand Rathi Share and Stock Brokers, says, “Geopolitical risks have boosted gold’s safe-haven appeal. Recently, the US National Security Advisor Jake Sullivan said that a Russian invasion of Ukraine could begin any time.”

Concerns over rising consumer prices have also added to the bullish sentiment