Gold slips by Rs 2,000, here's what you should do
For short term, one may seen some profit booking and gold may test Rs 45,000-44,000 levels, said experts.
Gold prices recovered marginally from the 2-month low level in the last session as US Treasury yields retreated, lifting the non-yielding bullion’s appeal.
On MCX, gold futures were up 0.4% to Rs 46,407 per 10 gram while silver inched 0.4% higher to Rs 69,500 per 10 gram at 10 am on February 18.
In the past five trading sessions, gold has slipped Rs 2,000 per 10 gram, in tandem with a decline in global rates.
As compared to August highs of Rs 56,200, gold is now down Rs 10,000 per 10 gram.
Gold, which had surged nearly 25% in 2020 had recorded its biggest annual gain in a decade.
It has now dropped over 6% so far this year and that is amid the optimism of a faster global recovery, fuelled by vaccine rollouts and hopes of more stimulus.
As for the outlook on gold prices, Anuj Gupta, Deputy Vice President, Commodity and Currency Research at Angel Broking has said, ” Gold prices corrected by 7.59% from Jan 2021 to till date, however silver prices increased 1.65% in the time period. Expectation of Stimulus package for US economy may also support the gold prices.
Dollar index trading on 3 year low levels which may gear up the gold demand.”
“We expect till the year end gold may test again Rs 52,000- 54,000 levels and silver may test Rs 75,000-80,000 levels, but for short term we may seen some profit booking and gold may test down side Rs 45,000-44,000 levels and silver may test Rs 64,000-62,000 levels.”
On the strategy which investors must now adopt on gold, Gupta said: “One can buy gold and silver on lower levels as long term trend is positive.”