Bucking trend overseas, gold prices in India have fallen today. On the MCX, gold futures for October delivery at 11 am quotes down by 0.92% or Rs. 462 at Rs. 49919 per 10 gm. Silver too registered a sharp fall of 3.67% or Rs. 2246 to Rs. 58967 per kg. Silver earlier hit a high over Rs. 68000 per kg and gold on August 8 made it to a high of Rs. 56200 per 10gm.
International gold rates
Gold rates in the global market however gained as US-China tensions surfaced again and there were concerns on economic recovery front too. Nonetheless, the gains remained capped on account of a stronger dollar.
Also, Chicago Fed President Charles Evans suggested that the rates could be increased at a earlier time than detailed before. " Central bank could start raising rates before we start averaging 2 per cent, adding that the central still need to work out its new average inflation target.
In low interest rate regime, the opportunity cost of holding non-yielding bullion is lower.
What should investors do?
Experts suggest accumulating the traditional shiny asset as and when it corrects below Rs. 50000 as it did so in today's trade and continue to average on every Rs 500 to Rs 600 per 10 gm slide.
"Gold price was widely expected to go below Rs 50,000 and those who are looking for higher gains and have surplus amount for investing, this is the right time to start accumulating gold in their portfolio. One should buy gold at around Rs 49,700 to Rs 49,800 per 10 gm level and book profit at around Rs 52,500 to Rs 53,000 per 10 gm." Deputy Vice President - Commodities & Currencies at Angel Broking said. And once the consolidation is seen to be completed, gold will see a sharp rise and hit Rs 53,000 per 10 gm at MCX in one week to two weeks time.
Further no profit booking on the surge is advised, as all the triggers that pushed the yellow-metal gold to its life time high are still prevailing and it is expected that until Diwali or in the next 3-months, gold will again reach its life time high levels.