In Friday morning trades, gold prices are still under pressure. Today's gold prices started out lower and eventually hit an intraday low of 56,602 per 10 gm in the early morning session, losing close to 0.40 percent from Thursday's closing price on the Multi Commodity Exchange (MCX).
Spot gold is currently trading at $1,855 per ounce on the international market, down roughly 0.27 percent from the session's close price.
Experts in the commodities market claim that the US dollar index and bond yield have recovered from their oversold levels, which is why gold prices have reversed their historic gains. However, they argued that given the general optimistic tendency for the price of gold, investors should view this dip as a buying opportunity.
Anuj Gupta, vice president of research at IIFL Securities, commented on the decline in gold prices when he said, "Gold prices have decreased in recent sessions due to rebound in US dollar index and US bond yield as these assets had fallen to an oversold situation. However, increased levels of profit taking in these assets are anticipated, and under those circumstances, the price of yellow metal may strongly recover. Therefore, gold investors should view this drop in price as a purchasing opportunity.
According to Anuj Gupta of IIFL Securities, the price of gold today in the international spot market has broken through its immediate support of $1,860 levels, and is currently placed at $1,835 levels. He argued that the $1,890 level will remain the top barrier for the yellow metal.
Anuj Gupta suggested the buy on dips technique to gold investors, "For a short-term goal of £57,100, one can purchase gold at a price of 756,600. But a strong stop loss must be maintained at levels of 756,350."
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