Gold Price Corrects To Rs. 45000; Accumulation Suggested At Current Levels

Even as internationally, gold price trend higher on optimism over $1.9 trillion coronavirus aid in the US and decline in treasury yield, prices in India continued to correct.

Spot gold was up 0.2 per cent at $1,726.84 per ounce by 0046 GMT. U.S. gold futures added 0.1 per cent to $1,723.80.

In India, gold prices on the MCX for April delivery went lower by Rs. 247 or 0.55 percent to Rs.45061 per 10 gm. Silver futures also continued to decline and are down by Rs. 922 or Rs. 66500 per kg.

Given the immense correction in gold prices from record highs struck in August last year, experts suggest to take a bet on the yellow precious metal. This is as the outlook for the gold price is positive from a long term perspective. Also, gold is the best safe-haven asset, portfolio diversifier and a hedge against inflation.

Accumulate gold at current price levels

"The long term fundamental of gold continues to remain very bullish because we do not see any exit policy by the central bankers going forward during next 6-12 months. So these are great levels to accumulate gold. I don't see a significant correction from these levels", suggest Nirmal Bang's Kunal Shah.

"The long term fundamental of gold continues to remain very bullish because we do not see any exit policy by the central bankers going forward during next 6-12 months. So these are great levels to accumulate gold. I don't see a significant correction from these levels", he added.

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