Gold price dips for fifth straight day; should you buy? Here is what holds key

Gold price today dipped  to $1,680 per ounce — losing around $13 per ounce in the international commodity market. According to experts, the precious yellow metal slid for the fifth consecutive day as the news of Gilead Coronavirus treatment trial in the US has put some positive sentiment among investors. They said that from potential Gilead drug success news, rise in WTI crude oil price and Venezuela Central Bank announcing sale of its gold reserves have all triggered selling in the yellow metal at various Commodity exchanges.

Speaking on the gold price Anuj Gupta, Deputy Vice President — Commodity and Currency trade at Angel Broking said, "Gold price has been under pressure after the newsbreak of Gilead Coronavirus treatment trial and rise in WTI crude oil. Apart from this, Venezuela has announced its intent to sell gold and this has also put pressure on price of the yellow metal globally." 

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Gupta said that gold price may slide up to $1,640 per ounce but overall gold price outlook would much depend upon the latest developments in Coronavirus treatment trial success in coming days. He said that gold price is trading in the range of Rs 44,000 per 10 gm to Rs 47,000 per 10 gm at the MCX while in global commodity market it is trading in the range of $1,640 per ounce to $1,750 per ounce.

Amit Sajeja, Research Analyst at Motilal Oswal said, "Gold price has come down from $1,755 per ounce levels to around $1,680 per ounce. In my opinion, gold price may further go down up to $1,650 per ounce levels but not below that. The way US President Donald Trump is hellbent on announcing stimulus for the US economy revival and raising the US-China tariff tension again, it may further destablise the global economy, which may boost gold price. So, I would advise gold investors to take fresh buying positions when gold comes around $1,650 per ounce levels as it may showcase $1,780 per ounce levels in next three to four months."