Gold Price Today: Yellow Metal Near A 3-Month Low; Good Opportunity To Buy?

Gold Prices Today: Yellow metal remained near a three-month low tracking a weak global trend in precious metals. On MCX, gold futures fell to Rs 50,050 per 10 gram in early trade, before recovering slightly to Rs 50,184. However, silver futures gained 0.21 per cent or Rs 113 to Rs 52,715 per kg.

Globally, yellow metal prices edged up but were headed for a third straight weekly drop, as data pointing at a resilient US economy bolstered the likelihood of the Federal Reserve keeping interest rates higher for longer and pinned the dollar near recent peaks. According to Reuters, spot gold inched up 0.1 per cent to $1,697.80 per ounce, but was down 2.2 per cent for the week so far. US gold futures were flat at $1,709.10.

Sriram Iyer – Senior Research Analyst at Reliance Securities, said: “Gold & silver prices extended losses on Thursday with gold falling below the $1700/ounce level for the 1st time Mid-July as a rising dollar and expectations for aggressive interest rate hikes dented its appeal. The Dollar Index hit a 20-year high after US data showed a buoyantly strong economy, giving the Fed more room to raise interest rates and weighed on prices.”

Should you Invest in Gold?

Bhavik Patel, senior commodity/currency research analyst at TradeBulls Securities, said: “Right now investors are piling on safe-haven US dollars and Treasuries as it is giving more return than gold which does not provide any interest. However gold is looking attractive at current levels for any long-term gains. Short term we might see gold consolidating at current levels but any buyers having a view of more than 6 months could invest in gold to not only hedge their positions from equity assets but also safeguard their risk by investing in safe haven metals like gold during times of slowdown.”

Read all the Latest Business News and Breaking News here