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Gold price drops, experts call it a ‘golden opportunity’ for buyers

By Saima Siddiqui 
Updated Date
Gold price drops, experts call it a ‘golden opportunity’ for buyers

New Delhi: As Gold price hit a new low after soaring for several months, the commodity experts saw this as an opportunity for the yellow metal buyers while gold remains ‘bullish.’ The precious yellow metal saw a ₹108 dip per 10 gm at Multi Commodity Exchange (MCX) and closed at ₹47,526 per 10 gm.

Also Read :- Gold prices near 1-month low after sharp fall today, silver rates higher

According to commodity experts, rising concern of global inflation and rising new cases of Covid-19 in the US, Europe and South East Asia can once again make gold an ‘investor’s haven.’ They advised bullion investors to maintain ‘buy on dips’ strategy till yellow metal is priced above ₹46,500. They are of the opinion that precious metal may go up to ₹52,500 per 10 gm levels by Diwali 2021.

Talking about the overall gold price outlook; Sugandha Sachdeva, Vice President at Religare Broking Ltd said, “Outlook for gold is still bullish and any dip in gold price should be seen as an opportunity by yellow metal buyers till the precious metal is priced above ₹46,500 per 10 gm. The triggers working in favour of gold price rally in the long-term are rising concern of global inflation that seems to be persisting further and increasing number of Covid-19 cases, which includes the delta variant cases in the US, some European nations and South-East Asian countries, even though the soaring risk appetite globally has dimmed the appeal of gold to a large extent this year.”

On gold price prediction for short-term Anuj Gupta, Vice President — Commodity & Currency Trade at IIFL Securities said, “Gold price is bullish till it is trading above $1,750 per ounce levels and in MCX terms; strong gold price has strong support at around ₹46,500 to ₹46,200 per 10 gm levels. So, one should maintain buy on dips strategy as in short-term, the gold price is expected to go up to ₹48,500 per 10 gm mark.”

While, on gold price forecast for long-term Sugandha of Religare Broking said, “At MCX, gold price has strong support at ₹46,500 and one should continue buying gold on every dip till it’s above ₹46,500 per 10 gm mark on a closing basis. On the other hand, it’s immediate hurdle is ₹48,500 and once it breaks this levels, we can expect to see gold price MCX at ₹52,500 by Diwali 2021. So, my advice for gold buyers is to maintain buy on dips strategy with strict stop loss of ₹46,500 per 10 gm on a closing basis. Even if prices breach ₹46,500 per 10 gm mark, we are penciling in a decline towards ₹45,500 to ₹45,200 per 10 gm area that should again invite strong buying interest for a medium to long term perspective.”

Also Read :- Gold price today falls for 3rd time in 4 days, down ₹9,500 from record highs

Sugandha further added that in the international market gold price is currently trading in the range of $1,758 per ounce to $1,850 and maintained that $1,758 per ounce is a strong support for the gold price and it is expected to remain intact till these triggers exist.

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