Gold price has been falling recently. At the time of writing today, the price of 10 gram 24 carat Gold in Delhi was Rs 59,170, down nearly 5.7% from a high of Rs 62,720 on May 24, 2023. Amid the falling price of yellow metal, is it a good time to buy Gold or should you wait for further price correction? FE PF Desk talked to some industry experts on this topic. Read on to find out what they say.

Sachin Kothari, Director of Augmont Gold for All, says Gold has lost its safe-heaven appeal in the short term because central banks around the world have turned hawkish in their monetary stance. The US FED has raised interest rates by 500 bps, BOE by 475 bps, and ECB by 400 bps in the last 15 months to tame inflation which is above the Central Bank target.

Will the Gold rate fall further?

Kothari says Gold price may fall by another 3-4% from current levels and remain vulnerable in the short term.

“Gold prices are expected to remain vulnerable and fall by 3-4% from current levels as we will see more rate hikes in the coming two months,” says Kothari.

Mahendra Luniya, Chairman of Vighnaharta Gold Ltd, says Gold is witnessing a fall in price in recent times. However, looking at the scenarios of world economic data and the actions of various central banks, it seems that the fall is just a result of profit booking and not a reversal.

Check: Today’s Gold and Silver rates in India

“Central banks around the world are either maintaining the rise in interest rates or holding on to them because of sticky inflation. Hence we think that the prices are not expected to fall much and do not expect a deep correction in price. Whereas profit booking might continue for a while,” says Luniya.

is it a good time to buy?

Kothari says it is a good time to buy gold, as the downside is limited and the long-term view is still bullish as severe rate hikes are expected to lead the economy into recession by the end of 2023. “Therefore, we could see record-high prices in Gold by the end of 2023.”

Luniya also says that the correction phase seems a good time to accumulate Gold further as the inflation concerns are here to stay in the near future.

“The ETF data also shows there is interest in buying Gold as it is going through this profit book phase. Hence we suggest that investors eyeing to invest in gold should consider to start buying in instalments and keep accumulating at these levels,” says Luniya.

Also Read: Gold rate is down. How much time does it take to beat inflation?

At what price one should buy Gold now?

“In dollar terms, $1,900 seems strong support for the price and is not expected to go below the same. In the Indian market, Rs 58,000 per 10gm seems a level that will act as a support and hence buying around the same price may turn out a fair buy with the expectation that the price will start rising soon,” says Luniya.

Disclaimer: The views expressed in this article are that of the respective commentators. The facts and opinions expressed here do not reflect the views of www.financialexpress.com. Please consult your financial advisor before making any investment decision.