For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Gold Prices At 2-Month Low: Buy Opportunity Is Nearing Say Experts

|

Gold prices in the international markets fell to its lowest in over two months, however, in India, rates remain steady as the slump was outweighed by the rupee's weakness.

Gold Prices At 2-Month Low: Buy Opportunity Is Nearing Say Experts
 

Spot gold was down 0.1 percent at $1,862.41 per ounce, after hitting its lowest since 22 July at $1,847.57 on Thursday.

As for gold prices in India, futures of the metal on MCX (the largest commodities exchange in India) was down marginally trading at Rs 49,750 per 10 grams on Friday after closing 0.80 percent higher at Rs 49,904/10 grams on the previous day.

In the global markets, the precious metal fell as investors moved towards the US-dollar, another safe-haven asset, on fears around the economic recovery. Stocks and the yellow metal are moving downwards on fading hopes that the US government will provide any further stimulus for its economy for the next several months.

Also, last week, official data from the American government showed that claims for unemployment benefits in the US had unexpectedly increased.

Gold rates have slipped over 10 percent for the peak seen in August when prices in India had surpassed Rs 57,000 per 10 grams. However, as the US dollar rose to a two-month high on concerns regarding global economic recovery and the second wave of coronavirus infections, the rupee ended at 73.90/dollar on Thursday, its weakest close since 26 August- a nearly one-month low. Bloodbath in the Indian stock markets also added pressure on the domestic currency.

Weakness in the rupee has curbed the extent of fall in gold prices in India, not entirely benefiting retail buyers of jewellery in the country.

However, some experts believe that the decline in rates is nearing a buy signal. In an article on FXEmpire, AG Thorson, a registered CMT and expert in technical analysis said that "gold is dropping into the next intermediate low. Prices should bottom in late September or early October."

 

The Bearish Breakdown is underway, and prices should enter cycle bottom target window ($1725 - $1810) by late September or early October, Thorson said. He added that once the metal hits the bottom target and starts rising, it could be an opportunity to buy.

"We are expecting international gold prices to correct till $1,820 per ounce. On MCX, the yellow metal may test Rs 47,000. However, the long term trend is positive and we believe anywhere between Rs 45,000-47,000 will be a good entry point for buyers," said Anuj Gupta, DVP- Commodities and Currencies Research, Angel Broking.

Read more about: gold gold price
Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X