Gold falls by nearly Rs 3,600/10 gm in 1 week; is it right time to buy dip for investment and wedding purposes?
Ever since the uncertainty around the US elections are now behind us, safer assets have taken a frontseat and gold despite its 'safe haven' demarcation is losing ground. Taking gold prices over the past week into account, precisely after the Trump's win- gold prices have significantly gone down by as much as Rs 3,580 per 10 gm.
MCX rate today
On the MCX, gold has been in a downtrend, extending its past losses. At the last count, at the day's low, December gold futures were at Rs 74,842 per 10 gm.
Current correction viewed as time correction
Ajay Kedia- Director at Kedia Advisory believes the recent technical correction over the past two days is steep, it will still take more time on the fundamental front as volatility in the precious yellow-metal will increase as we head to the year end.
Surge in dollar and crypto seen as few factors leading to losses in gold
Manoj Jain- Commodity expert-India Nivesh said, "Gold prices sharply corrected after Dinald Trump won U.S. Presidential elections. Strong rally in the dollar index and crypto currencies are also a reason for sharp correction in gold prices."
Gold prices also declining amid anticipation of lesser aggressive rate cut path
After the recent Fed cut path and the US economy stand, there are expectations that going ahead the US Fed may not take to high rate cuts. This is also leading to a pull back in the commodity.
Levels to buy gold
Kedia suggested that one may buy gold between Rs 74,00-Rs 74,500 per 10 gm. Jain also echoing a more or less similar view suggested that long-term investors can start buying gold in a staggered manner in Rs 75000-73500 range. Short term traders could wait for sometime to stabilize markets.
Gold price oulook
Kedia does not sees the correction to persist for long and he sees limited downside, foreseeing gold at again Rs 85,000 per 10 gm levels next year.