Prices of precious metals like gold and silver accelerated on Thursday after Russia declared war on Ukraine.
Global equity indices slide and commodities, including gold, surged as hostilities started.
Concurrently, gold prices rallied with MCX Gold April futures surging by 2.25 percent to Rs 51,500 per 10 gram.
Besides, 'Spot Gold' prices at COMEX traded near $1940 per ounce breaching near-term resistance of $1920 per ounce while the next target seems at $1970 per ounce on geopolitical risk.
Notably, Russia is one of the world's top producers of Gold. Any western sanctions against Russia will stiffen the global supply.
Furthermore, Silver prices rallied by 2.31 per cent on COMEX.
The Spot COMEX silver prices traded at near the breakout levels at $25.10 per ounce of medium term chart.
On MCX, Silver traded at Rs 66,447 per kg.
"Gold prices have rallied on safe-haven buying along with the dollar on geopolitical risk fearing severe sanctions on Russia and possible disruption of supplies of commodities," said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
"The sharp fall in the rupee has also lent support to MCX GOld prices compared to global gold prices."
According to Kshitij Purohit, Lead of Commodities and Currencies CapitalVia Global Research: "On the hourly chart, the MCX Gold April contract has formed an ascending broadening wedge formation and has remained within a channel with downside corrections over the last few sessions."
"The immediate support level could be around 47,750, while the resistance level could be around 51,000 - a psychological level for the short term."