Gold may slip below Rs 45,000: Expert

Gold prices are hovering near 8-month lows, which is down Rs 10,000 from all-time highs of Rs 56,200.

On February 22, gold and silver prices moved marginally up in the Indian markets, tracking higher global rates.

India Gold MCX April futures were trading higher by 0.23% at Rs 46,305 for 10 grams whereas March silver futures were trading 0.56% higher at Rs 69,400 a kilogram at 9:20 am today.

As for the spot prices, in Delhi, the price of 22-carat gold stood at Rs 45,410 per 10 grams and for buying 10 grams of 24-carat gold one will have to pay Rs 49,440 today.

Last week, spot gold prices ended lower by 2% as soaring US treasury yield and rising global stocks shifted the  investors away from the safe haven asset.

Rising bets on economic recovery following the enormous $1.9 trillion stimulus plan by US have led to the recent rise in the benchmark US Treasury Yield.

So should you invest in gold at these current levels or will there be further correction?

“Near term outlook of gold remains weak which may bring further dip in prices. Rising bond yield and recovery in economies seem to be fading gold and silver demand. So, we expect gold to slip further and it may also test 45,000 levels on MCX,” said Anuj Gupta, Deputy Vice President, Commodity and Currency Research at Angel Broking.

As for the strategy which investors must follow, Gupta believes a correction from here should be seen as a buying opportunity for the long-term.