Gold prices in India are retreating lower mirroring trend in the international markets. After gold prices in the international markets bounced back to $1800 per ounce there were expectations that gold prices may bounce back going ahead.
On the MCX, gold prices for August contract are last trading down by Rs. 108 at Rs. 47,526 per 10 gm. In the retail market too, gold prices in the National market are trading down by a tad at Rs. 47,860 per 10 gm. In the previous day's trade gold in the NCR region were priced higher against the international trend.
Usually, in the retail market gold price are higher than in the futures market owing to taxes and other charges.
Factors that may support gold run going ahead
- Uncertainty with respect to coronavirus cases:
In some of the economies including Europe, the US and South East Asia there is seen a rise in delta variant infection
- Inflationary concerns
Owing to widespread stimulus measures taken by economies world over there has been inflationary threat. Though economies including the US have iterated that inflation effects shall be transient in nature, we may see gold gaining sheen as it is a hedge against inflation.
Should you buy into yellow metal at current pricing?
It is being viewed by analyst that until the gold prices are above Rs. 46,500 one can buy gold at dips in a staggered manner to diversify as well as safeguard their portfolio.
Price forecast for gold
Analysts at international level said that gold may see some downward slide before running up further. In India, analysts suggest gold prices to hit Rs. 52,500 per 10 gm by Diwali. Sugandha Sachdeva of Religare Broking said, that in the international market gold price is currently trading in the range of $1,758 per ounce to $1,850 and maintained that $1,758 per ounce is a strong support for the gold price and it is expected to remain intact till these triggers exist.