Gold price sees huge drop in 6 years, experts say good opportunity to buy

If you want to buy gold or gold jewellery then there is important news for you. On Friday, the fifth day of this trading week, gold price on Multi Commodity Exchange (MCX) gained ₹198 and closed at Rs 48083. Earlier on Thursday, gold had closed at Rs 47798 per ten grams. 

However, this rise was not enough to pare its biggest fall in six years as gold ended year 2021 losing more than 4 per cent this year. MCX gold priced today at Rs 48,000 is Rs 8,000 lower from its all-time high rate of Rs 56,200 per 10 gm.

As per the commodity market experts, the price of gold today which is Rs 8,000 lower from its all-time high price has been able to attract customers every time it dipped below $1800 levels. 

Experts suggests that, as current gold price trade pattern indicates sideways trend with positive bias, they suggest to short-term gold investors to maintain buy on dips strategy.

According to the experts MCX gold price today is priced above ₹48,000 per 10 gm and it has strong support at ₹47,500 levels.
For short-term investors ₹47,800 to ₹47,900 is quite a good buying price as soon the price of gold is going to go up to ₹49,300 to ₹49,500 per 10 gm once there is ease Indian National Rupee (INR) against the US dollar (USD). In last one fortnight, Indian rupee has appreciated around ₹2 against the US dollar. This appreciation rupee nullified the rise in gold price in spot market. But at present the price of gold is a good opportunity for short term gold investors as demand for dollar is expected to pick up in New Year 2022.

"It's custom that forex traders square off their positions in US dollar and take fresh position in January post-new year celebrations. So, in second fortnight of each year, dollar dips against major global currencies and from second to third week of January, the US currency starts gaining its lost ground. So, from second week of January, rupee is expected to calm down against the US dollar that will support gold price rally in short term. So, one should buy gold at around ₹47,800 per 10 gm levels maintaining stop loss at ₹47,500 levels. In next, one month, the yellow metal may go up to ₹49,300 levels. However, if the gold price rally continues in spot market, it may go up to ₹51,000 to ₹51,500 per 10 gm levels by end of March 2022," said Anuj Gupta of IIFL Securities.