Following US intelligence predicting possible invasion of Ukraine by Russia on Wednesday coincided with the increasing issue of inflation, gold prices sharply increased.
The price of gold spikes when the demand increases and as inflation causes more concern alongside the issues surrounding Ukraine, this means that gold’s safe-haven appeal is intact.
With more people wanting secure investments, the higher the prices of gold soar.
According to data from The Gold Bullion Company, around this point last year the gold price per troy ounce hit a low of £1220.07.
A year later, the spot price for gold has steadily increased and surged to £1368.70 per troy ounce.
Analysis of the data from the Gold Bullion Company shows that over the last three months the higher spot price for gold has remained stable.
On October 5, last year, the precious metal had a spot price of £1287.02 which gently increased until the first and second week of November where the price sharply rose.
Across the first week of November, the spot price rose from £1291.02 on October 3 to £1344.71 on October 8.
The surge that followed then increased the price of gold over two days from £1375.21 to £1387.97.
Though the price has dropped slightly from this figure, the spot price has remained in the same region for the last three months.
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“MCX Gold April support lies at Rs 48,800 and resistance at Rs 49,400 per 10 gram.”
It is not only gold that is seeing a rise in prices. According to the Indian Bullion and Jewellers Association, on Friday silver had a spot price of Rs 62,157 per kg.
Silver futures rose more than 1.04 percent or Rs 654 to Rs 63,642 per kilogram.
Though gold spot prices have moved around Rs 1,100 per 10 grams since the end of January, Silver has demonstrated a similar rise per kilogram in the same period.
Other metals like platinum are up 0.8 percent at $1,036.14 and palladium price increased by 3.7 percent to $2,391.73 per ounce.