Even though gold prices fell on the Multi Commodity Exchange (MCX) on Friday, they continued to remain at multi-month highs amid the Russian invasion of Ukraine.

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Gold futures on MCX were trading lower by Rs 553 at Rs 51,000 per 10 grams on Friday morning. Silver futures also fell 1.65 per cent or Rs 1,105 to Rs 65,793 per kg.

The US and UK imposed fresh sanctions on Moscow on Thursday after Russian President Vladimir Putin ordered full-scale military operations in Ukraine. The fresh sanctions target Russian banks, members of Putin's closest circle and wealthy Russians.

Even as bullion investors weighed the situation in Ukraine and the impact of the fresh Western sanctions on Moscow, experts said gold prices would continue to soar in the near future.

Prices of the yellow metal could touch Rs 55,000 this year and Rs 62,000 in the next year, Business Today reported.

Two reasons -- the geopolitical event and the economic slowdown coupled with higher inflation -- will weigh on gold prices in the future, Kunal Shah, head of commodities research at Nirmal Bang, told Business Today.

Given the situation, central banks may defer raising interest rates which could lead to a fresh spike in inflation across the world, Shah said, adding that the price of gold could shoot up to Rs 54,000-Rs 55,000 in 2022 and Rs 60,000-Rs 62,000 in 2023.

“On an average, gold will go up at least by Rs 10,000 in the next two years,” Shah said.

Ravi Singh, vice-president and head of research of ShareIndia, echoed similar views on prices of the yellow metal. Speaking to The Economic Times, Singh said gold is likely to continue its bull run on the back of the geopolitical tension and higher inflation.

Meanwhile, the sell-off in the global equity market has also lent support to the metal, considered a safe haven in times of uncertainty. As investors diversify portfolio from equity to gold, prices of the yellow metal may further move northward, Anuj Gupta of IIFL Securities told Mint.

“At MCX, gold rates are expected to go around Rs 52,500 to Rs 53,000 levels. Those who bought gold recently are advised to hold the yellow metal for this target at MCX in the short term," Gupta said.

For the day, MCX Gold April support lies at Rs 50,800 and resistance at Rs 51,800 per 10 gram, Tapan Patel, senior analyst (commodities), HDFC Securities, told ET.

Read Also | Should you buy gold now? How analysts are viewing the Ukraine-Russia conflict

(Edited by : Thomas Abraham)