Gold Is Again Above Rs. 49000: At What Price Should You Buy The Precious Metal?

Gold prices have been running up for four straight days after US stimulus is widely anticipated. On Friday, on account of gains in rupee propelled by RBI's MPC decision and global weakness, gold towards the end of the session slid slightly but still holds above Rs. 49000 levels on the MCX.

Gold Is Again Above Rs. 49000: At What Price Should You Buy The Precious Metal?

The rate of 10 gram 22-carat gold in Mumbai was Rs 45,173 plus 3 percent GST, while 24-carat 10 gram was Rs 49,316 plus GST. The 18-carat gold quoted at Rs 36,987 plus GST in the retail market.

In the overseas market, yellow metal traded from flat to positive at around $1840 per ounce.And now as we can expect US stimulus to be doled out any time soon as per the urge being made by the US Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin, any steep correction in price can be a buying opportunity.

Other factors being lending support to gold prices

1. US jobless claim data which has come in weak
2. Services PMI in the US not impressive

At the same time there is seen a pullback from gold ETFs, which is to an extent curbing sharp upside in the yellow metal.

At what prices should you buy gold?

For value buying, price deemed correct to get into the metal shall be between Rs. 46000- Rs. 47000, this is if investors are willing to stay invested for 12-18 months. And so if allocation of an investor is less than the prescribed i.e. less than 10-15 percent then one can wait for these price levels, said Kishore Narne, associate director and head of commodities and currency, Motilal Oswal Financial Services.

And for the best and ideal ways to bet on gold shall be gold ETFs and sovereign gold bonds or SGBs.

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