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Gold yielded its shine and maintained its near three-months low momentum during Friday's session on the back of the weak global trend in precious metals fuelled by expectations of continuation in aggressive rate hikes from the US Fed. Also, a weak Indian rupee against the greenback sparked downside support in the yellow metal. The international gold spot hit a six-week low currently. A significant price correction is expected in the gold ahead, however, in the long-term, this precious metal is seen as a good investment.
Currently, on MCX, gold futures with an expiry of October 5, 2022, is around ₹50,323 up by ₹253 or 0.51%. It had clocked ₹50,050 in the early intraday-day trade.
Meanwhile, silver futures expiring on September 27, 2022, at the time of writing, is at ₹52,890 up by ₹288 or 0.55%.
In India, 22 carat gold in 10 gram is at ₹46,400 down by ₹100 from the previous day, while the same carat in 100 grams is priced at ₹4,64,000 dropping by ₹1,000, as per Goodreturns data.
Whereas the price of 24 carat gold in India is at ₹50,620 in 10 gram lower by ₹110. While in 100 gram the same carat is available at ₹5,06,200 cheaper than ₹1,100 compared to the previous day.
In the international market, spot gold erased the $1,700 an ounce mark. On Investing.com, the spot gold was around $1,704.86 an ounce up 0.43% after clocking an intraday low of $1,695.10 per ounce and high of $1,707.40 per ounce.
As per a Reuters report, the metal was down about 2% for the week so far, having touched a six-week low of $1,687.60 on Thursday.
On the 3-month low performance of gold, Hareesh V, Head of Commodities at Geojit Financial Services said, "Gold prices in the international market shed below $1700 an ounce yesterday, on expectations that the US Federal Reserve will retain its aggressive rate hike policy. Easing safe-haven demand and a spike in the US dollar also weighed the sentiments. However, investors keenly awaiting for the key US job numbers, scheduled later the day to get a direction of the US economy."
In the domestic futures market, Hareesh said, "prices declined to a one-month low, but a weak Indian Rupee offered downside support."
Is it a good time to buy gold?
According to Hareesh, on the trading side, domestic gold prices are likely to remain strong. Although there may be significant price corrections in the short-term, gold is a good long-term investment.
"However, investors are advised to buy and hold small amounts during price corrections," the commodities expert added.