Home >Markets >Commodities >Gold price: Experts suggest 'buy on dips' strategy for investors

Gold price yesterday at Multi Commodity Exchange (MCX) rose 545 and closed at 46,964 per 10 gm levels. According to commodity experts, gold price in the international market is at $1,744.65 per ounce and the precious yellow metal has strong support at $1670 per ounce while its immediate support is $1,700. They said that overall sentiment for gold is bullish till it is trading above $1,700 per ounce. They advised gold investors to maintain 'buy on dips' strategy as rising COVID-19 cases and dip in equity returns may help gold once again emerge as 'investors haven.' The bullion experts said that at MCX, gold price in short-term may go up to 48,000 per ounce while in mid-term or say in next six months, the precious yellow metal may go up to 50,500 per 10 gm levels.

Major triggers for gold price rally

Speaking on the triggers that will fuel gold price rally Amit Sajeja, Vice President — Research at Motilal Oswal said, "Major trigger for gold price rally is the rising COVID-19 cases globally. Fast approaching marriage season and record rise in the COVID-19 cases in India will further help gold price to recover its lost ground after it made its bottom at $1,670 per ounce in the international market."

Sajeja went on to add that gold price in the international market has strong support at $1,670 while its immediate support is $1,700 per ounce levels. He said that till gold price in the international market is above $1,700 overall sentiment for the bullion metal will remain bullish and any dip to the tune of 4-5 per cent should be seen as a buying opportunity.

Gold price prediction

Commenting upon the gold price outlook; Anuj Gupta, Vice President — Commodities & Currency Trade at IIFL Securities said, "Gold price at MCX in the next two month may hit 48,000 per 10 gm as upcoming marriage season in India will lead to rise in demand for physical gold. Apart from this, second wave of COVID-19 has hit equity, bond and other investment yield and if this trend continues for next fortnight, gold may emerge as investors have again."

Asked about the gold price prediction for both short-term and medium-term Amit Sajeja of Motilal Oswal said, "In short-term, we can expect gold price at MCX to go up to 49,000 while in the medium-term or in the next six months, the precious metal price may go up to 50,500 per 10 gm."

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