Gold prices hit 19-month high of $2,000/oz as Russia-Ukraine war escalates

Last week, MCX silver gained by 6.56 percent at Rs 69,160 levels. On the international exchange, COMEX, spot silver increased by 5.93 percent to $25.68 levels. Currently, it is trading at $26, which is a seven-month high. MCX silver gained by 9.29 percent, while spot silver increased by 11.57 percent year-to-date.

Geopolitical tension between Russia and Ukraine played a supportive role for the precious metals, .said Anuj Gupta, VP-Research at IIFL Securities

"We are recommending still buy and hold in Gold and Silver. Traders can buy and hold the gold with the stoploss of Rs 51,000 for the possible target of Rs 54,000," said Gupta.

"They can also go for buy and hold the silver with the stoploss of Rs 67,000 for the target of Rs 72,000-Rs73000 levels in a near term." Technical and Fundamental aspects are positive for bullions and spot gold may test $2,050, while spot silver could see $27 levels very soon, Gupta added.

Ravi Singh, Vice-President and Head of Research at ShareIndia, said, "An escalation of war by Russia is impacting commodities prices worldwide. New sanctions against Russia triggered massive jumps in gold prices as well. Fears of stagflation also started to creep in, with concerns over high commodity prices impacting inflation and slowing growth."

"Buy Zone Near - Rs 52,300 for the target of Rs 52,800. Sell Zone Below - Rs 52,000 for the target of Rs 51,800."

Oil prices also increased substantially in the international markets on Monday, rising nearly 10 percent as the risk of a US and European ban on Russian product and delays in Iranian talks triggered a major stagflationary shock for world markets.

Oil prices go past $130 in Asia, euro falls as bonds rally

Brent crude gained $12.73 to $130.84, while US crude added $9.92 to $125.60 as the war between Russia and Ukraine continued.

Oil prices climbed 21 percent last week. Reuters quoted BofA chief economist Ethan Harris as saying that loss of Russia's 5 million barrels could see oil prices double to $200 a barrel and lower economic growth globally.

Apart from crude and bullions, a sharp appreciation is seen in industrial metals too. Copper prices increased by 15.04 percent year-to-date and touched a life-time high of 864 levels, while Zinc increased by 17.17 percent and touched a life-time high of 344.40 levels.

Aluminum and Nickel also touched their life-time highs, jumping by 40.51 percent and 54.82 percent, respectively.

Energy crisis, geopolitical tension, higher cost of minings, pandemic and increase in industrial demand after lockdown were the major factors for the higher Industrial metal's prices, Gupta said. "Technically and fundamentally industrial metals are still looking positive and we can expect furthermore upside in the base metals."