IIJS Signature 2022 -- Russia-Ukraine tensions on participants’ minds as gold prices go up

This might be a good time to invest in gold as the conflict between Russia and Ukraine may not subside fully, even if diplomatic talks succeed. In case a war-like situation comes about, gold prices are very likely to zoom, says Suneeta Kaul

Post By : IJ News Service On 21 February 2022 2:05 PM

Even as IIJS Signature 2022 draws to a close, with today being the last day, geopolitical worries stemming from the Russia-Ukraine conflict are causing participants to express concerns about the price of gold in the domestic market, as well as globally.

Escalating tensions between Russia and Ukraine have boosted gold prices to their highest levels since June. The yellow metal has seen a lot of demand from investors who are nervous about the possibility of an outbreak of war that could spark losses in other investments. Gold is always seen as a prized commodity in times of turmoil as it never loses value.

Bullion, particularly, is usually seen as a hedge against geopolitical conflicts. Gold contracts at the Multi-Commodity Exchange (MCX) were trading marginally lower today morning by 0.01% at Rs 50,107 for 10 gm.

Gold on their minds at IIJS Signature 2022

Expressing his views, Praveen Agarwal, Geeta Shyam Jewellers, who is participating in IIJS Signature 2020, says, “Owing to the on-going conflict between Russia and Ukraine, gold is expected to appreciate. In times of war, gold always appreciates. People tend to hoard gold, investors also jump in, and demand gets boosted. These are, actually good developments for gold.”

Agrees Sandeep Mehta, Mehta Gold, “Traders will try to hoard to manipulate the market, and most people will start buying, I will also start buying. Gold is bought as an investment. A war-like situation creates a hype. Plus, the wedding season is upon us, and that will also boost gold prices dometically. I perceive gold prices remaining broadly stable over the next three years. Consumption of gold is expected to go up, luxury items too are expected to do well.”

Says Satinder Jain, Jain Jewellers, who could not attend IIJS Signature this year, “Despite the recent surge, gold is still a long distance away from its all-time high reached in August 2020. This is a good time to buy gold. But keep in mind that if there is any resolution to the conflict, a corrective move is possible. In case tensions go up, I expect gold prices to be in the region of Rs 50,800-51,500 per 10 grams.”

Khushboo Ranawat, Swarnshilp Chains & Jewellers, has a somewhat different opinion. “The conflict between Russian and Ukraine will not have much effect on us. Gold always does well. In India, gold is sold in two forms. In the South, it is sold as a yellow metal for weddings and all cultural reasons. The other form is fashion jewellery. The trend is really catching on. Youngsters want to wear the same jewellery in four to five ways, they want affordable 18k gold jewellery for daily wear. The Indian consumer has full faith in gold.”

To conclude, this is a good time to buy gold. Even if the diplomatic talks succeed, the simmering tensions between the two countries are very likely to rise to the surface again, and a more volatile situation might ensue. In that scenario, gold prices are bound to rise steeply.

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