Gold Prices Fall As Dollar Strengthens; Current Timing Smart To Buy The Metal

Gold prices in India on October 13, 2020 corrected in tandem with global rates. In the futures market, gold on the MCX fell by Rs. 182 to Rs. 50925 per 10 gm.

In the international markets, gold prices edged lower on gains in the dollar even as rising coronavirus cases as well as dole out of a larger US stimulus checked huge losses for the yellow metal. Spot gold fell 0.1 percent to $1919.51 per ounce by 0117 GMT.

Gold Prices Fall As Dollar Strengthens; Current Timing Smart To Buy The Metal

The White House is considering a deal with Democrats on the coronavirus relief. On Sunday, the US President summoned Congress to pass an only essential coronavirus relief bill.

There are hopes that a large US stimulus may come after the November 3 elections to help the world's most developed economy to recover from the pandemic shock.
Also, coronavirus continues to ravage the US economy with more cases now reported in the last week.

View on gold by experts

"With the recent fall in prices, gold's risk-reward offer now looks even better. It is indeed a smart time to actually be buying the metal, not avoiding it. We suggest that investors use this correction to build their allocation to this monetary asset that has given near 25 percent returns in 2020. The macroeconomic realities facing the world today are going to ensure that gold will remain a preferred strategic asset now and for years to come," said Chirag Mehta, senior fund manager (Alternative Investments), Quantum Mutual Fund.

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