Gold prices have come off their August 2020 highs of over Rs 56,000 per 10 grams and are trading around Rs 48,000 currently.
So, should you look at buying gold at current prices or is there more correction in the offing?
Speaking to Money9, Vandana Bharti, AVP, Commodity Research at SMC Global, said: “For those who want to buy physical gold can look at investing at the current levels as the downside to prices is now limited.”
She also believes that the negative triggers with respect to reduced import duties have already led to the kneejerk reaction and is now priced in.
As for an outlook on gold demand, Bharti said that with more weddings scheduled to take place in 2021 the demand could surge going forward.
Several factors including the strengthening of the dollar index, progress on vaccination and economic recovery will be key to track in 2021 as they will determine how gold prices will move.
Bharti, however, sees gold prices touching Rs 60,000/10 gram over the next two years and therefore believes current levels provide ample opportunity for long-term investors.
