Gold price today may hit Rs 49,600 per 10 gm; bullion market experts say 'right time to buy yellow metal' for great returns

Gold price today crashed Rs 668 per 10 gm at Multi Commodity Exchange (MCX) to Rs Rs 49,713 per 10 gm. Silver price also crashed Rs 2,751 per kg and hit Rs 58,462 per kg levels. According to the bullion market experts, this is not the time to panic but to accumulate precious yellow metal as the downside risk from here is mere Rs 1500 per 10 gm while the reward can be another life-time high by end of December 2020.

Speaking on the gold price forecast, Amit Sajeja, Associate Vice President at Motilal Oswal said, "One should start accumulating gold below Rs 50,000 from Rs 49,700 to Rs 49,600 per 10 gm levels because once the consolidation in gold price gets complete, the yellow metal may shot up to Rs 52,500 to Rs 53,000 in just one week to two weeks time." Sajeja said that at current gold price levels, downside risk in gold buy is Rs 1500 per 10 gm while the reward can be another life-time high by the end of 2020. Sajeja advised gold investors to continue accumulating gold from here on every Rs 500-600 dips.

Pressing for fresh investment in gold, Anuj Gupta, Deputy Vice President — Commodities & Currencies at Angel Broking said, "Gold price was widely expected to go below Rs 50,000 and those who are looking for higher gains and have surplus amount for investing, this is the right time to start accumulating gold in their portfolio. One should buy gold at current levels of Rs Rs 49,700 per 10 gm level and book profit at around Rs 52,500 to Rs 53,000 per 10 gm." Anuj Gupta said that once the consolidation gets complete, gold price will show a sharp rise and hit Rs 53,000 per 10 gm at MCX in one week to two weeks time.

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On Tuesday, Spot gold ended lower 0.69 per cent to close at $1899.3 per ounce as the US Dollar appreciated to its highest is two months making the yellow metal expensive other currency holders. Meanwhile, no signs of further stimulus infusion by the US policy makers to support the economy shackled by the pandemic further pressurized Gold prices. However, US policy makers vowed to support the small businesses hit by the coronavirus-triggered slowdown. Markets will keep an eye on the US Federal Reserves’ official’s assessment of the current scenario in the world’s largest economy.  

On Tuesday, Spot silver dipped over 1.2 per cent to close at $24.4 per ounce while prices on the MCX ended lower by 0.17 per cent closing at Rs 61,213 per kg.