“Gold Prices Surge Amid Escalating Russia-Ukraine Tensions and Weakening US Dollar” : SRINAGAR: Gold prices edged higher in the domestic futures market on Monday morning following a surge in safe-haven demand, driven by rising geopolitical tensions and economic uncertainty. According to trading data, MCX Gold August 5 contracts were up 0.26 per cent at Rs 96,125 per 10 grams.
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The spike in gold rates comes in the wake of a renewed escalation between Russia and Ukraine. As per Reuters, Ukraine’s domestic intelligence agency, the Security Service of Ukraine (SBU), launched a large-scale drone offensive against Russia on Sunday, reigniting fears of broader conflict in the region.Market analysts said investor sentiment was further shaken by former US President Donald Trump’s threat to double tariffs on steel and aluminium imports, fuelling concerns over global trade tensions. The developments led investors to seek refuge in traditionally safer assets such as gold.The dollar also weakened in early trade, making gold cheaper for holders of other currencies. Simultaneously, a rise in domestic spot demand helped sustain upward momentum in futures prices, traders said.
In a potential diplomatic development, Russia and Ukraine are expected to meet in Istanbul on Monday for their second round of direct peace talks since 2022, though expectations remain tempered given the ongoing hostilities.Gold, often seen as a hedge against economic and geopolitical instability, tends to perform well during times of crisis. Analysts suggest that further volatility in global markets could continue to support elevated bullion prices in the near term.kashmir life .