Gold rates today down by ₹2200 from record highs. Good opportunity to buy?

In international market, spot gold price is quoting $1,855 per ounce, around 0.27 per cent lower from its previous session close price.

According to commodity market experts, gold prices have retraced from record high because of the recovery in US dollar index and bond yield from the oversold levels. However, they maintained that this dip should be seen as buying opportunity by gold investors as overall bias for the precious yellow metal is still bullish.

Speaking on gold price fall, Anuj Gupta, Vice President — Research at IIFL Securities said, “Gold prices have fallen in recent session due to recovery in US dollar index and US bond yield as these assets had fallen to an oversold condition. But, profit booking in these assets are expected on higher levels and I that condition, we may witness strong rebound in the yellow metal prices. So, this dip in precious metal should be seen as buying opportunity by gold investors.”

Anuj Gupta of IIFL Securities said that gold price today has breached its immediate support of $1,860 levels in international spot market and now its immediate support is placed at $1,835 levels. However, he maintained that upper hurdle for the yellow metal would continue at $1,890 levels.

On reason for rise on demand for US dollar and US bonds, Marc Despallieres, Chief Strategy and Trading Officer at Vantage said, “The US dollar retreated lower on Thursday, dropping to a daily low below 102.70 level but then rebounded back amid the fresh fears surrounding the economic slowdown ahead of the key US data. The higher government bond yields and comments from Richmond Fed President Thomas Barkin help the greenback to find demand, as he said that the effects of the Fed’s policy tightening has been substantial while adding that macroeconomic data put back the risk of a recession.”

Marc Despallieres went on to add that the following trend for Gold price still depends on the rate hiking path from the Fed. For more price action, eye on the comments from Federal Reserve officials and the US economic reports.

Advising buy on dips strategy to gold investors, Anuj Gupta said, “One can buy gold at ₹56,600 levels for short term target of ₹57,100. But, one must maintain strict stop loss at ₹56,350 levels.”

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.