Gold prices, which touched a two-month low on Tuesday, may witness further correction in the coming days giving some relief to families who have a wedding in this marriage season. Prices of gold had fallen below Rs 60,000 per 10 gm on Tuesday and were hovering around Rs 59,980 per 10 gm.
Hareesh V, Head of Commodities at Geojit Financial Services said “There are chances of more correction in prices in the immediate run. Hence, it would be advised to wait further for fresh investment. However, the long-term outlook of gold still looks bullish.”
*Jateen Trivedi, VP Research analyst at LKP Securities*:
Gold has more or less priced in the negative effects due to dollar appreciation in the last few weeks wherein prices of the dollar have risen from 101.50 – 104 and gold in Comex has witnessed a decent decline from $2080 to $1950, ” said Jateen Trivedi, VP (research analyst) at LKP Securities. He added, “In MCX we have seen price of Rs 62000 per 10 gm corrected to Rs 59000 thus allowing the investors who were waiting for an opportunity to enter into the old position. They should happily start accumulating as prices can take a small beating towards 58500 but we do not see prices going below Rs 58000. For the upside potential of Rs 62000 again buying is recommended in accumulating manner.”
Sandeep Jain, managing director of Trans Scan Securities said that there are three reasons why the gold prices have dipped. “First, investors who hold foreign currencies are forced to pay more for gold due to the growing US dollar. Second, with rising interest rates, gold is becoming a less appealing investment. Weak demand at the spot markets is also a reason to add on.”
S. K. Hozefa, CEO of Tradeplus Online added that investors and traders should approach this situation with a strategic mindset. “Consider the inverse relationship between the dollar’s movement and gold prices, as a stronger dollar tends to put pressure on gold. Keep a close eye on the economic indicators and the progress of debt ceiling negotiations, as these factors can impact the market dynamics.”