Gold gains Rs 75, oil jumps toward $115 as Ukraine conflict offsets Iran supply hope

New Delhi: Gold climbed Rs 75 to Rs 51,863 per 10 grams in the national capital on Friday, reflecting stable world prices and a weak currency. The precious metal completed the previous trade at Rs 51,788 per 10 grams.

Silver, on the other hand, fell by Rs 453 to Rs 67,996 per kg, down from Rs 68,449 per kg in the previous session.

"On Friday, COMEX spot gold prices were unchanged at USD 1,936 per ounce. Gold prices were supported by a drop in US bond yields, as well as inflation fears caused by an increase in energy costs "Tapan Patel, Senior Analyst (Commodities) at HDFC Securities, agreed.

Meanwhile, oil rose 4% to $115 a barrel in a tumultuous session on Friday, as concerns over disruptions to Russian supplies due to Western sanctions outweighed the chance of increased Iranian supply in the event of a nuclear deal with Tehran.

Russian forces captured Europe's largest nuclear power station in Ukraine in what Washington described as a reckless attack that risked disaster, despite a flame in a training facility being contained and officials declaring the site was safe.

Brent crude reached a high of $114.98 per barrel and was up $4.44, or 4%, at $114.90 by 1300 GMT. The West Texas Intermediate (WTI) crude oil price in the United States rose $4.06, or 3.8 percent, to $111.73 after reaching a high of $112.84.

Crude oil touched a decade high this week, and prices are on track for their best weekly increases since the middle of 2020, with the US benchmark up more than 21% and Brent up 17%.

Oil prices are rising on concerns that Western sanctions over the Ukraine war could impede shipments from Russia, the world's largest crude and oil product exporter combined.

Trading activity for Russian crude has slowed as buyers are hesitant to make purchases due to sanctions imposed on Russia, while US President Joe Biden is under increasing pressure to prohibit US imports of Russian oil.

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