Gold prices have corrected about 10% in recent weeks from an all-time high of $3500 in the international markets and Rs100,000/10 gms on the MCX. The current market price of gold in the international markets fell below $3200/ounce while on the MCX gold price hovered below Rs 93,000/10 grams.
Prathamesh Mallya, DVP- research, non-agri commodities and currencies, Angel One said ease in geo-political tensions between India-Pakistan, Russia-Ukraine, and ease of tariff situation between US-China, shifting inflation expectations in the US, along with are all combination of factors driving gold prices correction in the recent weeks.
“The recent correction in gold prices have given investors an avenue to buy at lower levels, hence, our advise to investors is to accumulate on dips at around Rs 90,000/10gm mark. The upside potential for gold prices can be around Rs 97000/10 gms mark from a fortnight perspective,” added Mallya.
In the international market, spot gold prices fell further as the Friday session progressed, taking the total decline to more than 4% during the week. This is the biggest weekly fall for the yellow metal in six months.
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said that gold prices remained volatile, hovering near $3,200 on Comex and `92,700 on the MCX, as markets reacted to potential trade agreements between the U.S. and key partners like the UK and China.
He added that the absence of a dovish signal from the U.S. Federal Reserve, with no immediate interest rate cut, further limited buying momentum in bullion.
“Technical indicators suggest continued weakness as long as prices remain below Rs 94,000 on MCX and $3,240 on Comex. The easing of global risk concerns and a firm dollar may continue to pressure gold in the short term,” said Trivedi.