Gold prices in the national capital rallied by Rs 1,656 to Rs 51,627 per 10 grams on Thursday on the back of safe-haven buying and sharp depreciation of the rupee amid the Russia-Ukraine conflict, according to HDFC Securities.
The yellow metal had closed at Rs 49,971 per 10 grams in the previous trade. Silver prices also shot up by Rs 2,350 to Rs 66,267 per kilogram compared with the previous close of Rs 63,917 per kilogram.
On Thursday, the rupee plummeted 109 paise to close at 75.70 against the dollar as Russia announced a military operation in Ukraine.
HDFC Securities Senior Analyst (Commodities) Tapan Patel said, "spot prices for 24-carat gold at Delhi surged by Rs 1,656 in line with gains in COMEX gold prices along with rupee depreciation".
He also said that gold prices rallied on safe-haven buying along with the dollar on geopolitical risk fearing severe sanctions on Russia and possible disruption of supplies of commodities.
Russian President Vladimir Putin on Thursday announced a military operation in Ukraine and warned other countries that any attempt to interfere with the Russian action would lead to "consequences they have never seen".
In the international markets, gold soared to $1,942 an ounce while silver was also trading higher at $25.07 per ounce.
"Gold prices traded higher with spot gold prices at COMEX rallying 1.80 per cent to $1,942 per ounce on Thursday," Patel said.