Gold price tumbles over ₹1000 in a week. Is this dip a buying opportunity?

-11656130687107.html Gold prices took a breather after a series of gains witnessed in recent weeks. The yellow metal future contract for August 2022 ended around ₹1,000 lower from its last week highs at ₹50,603 per 10 gm levels. Spot gold price closed at 1826 per ounce levels. Taking cues from weakness in base metals’ prices, MCX silver prices corrected sharply by 1.95 last week and closed at ₹59,749 per kg levels. MCX silver price corrected by 2.57 per cent and closed at $21.11 per ounce levels.

According to bullion experts, spot gold price has immediate support at $1810 per ounce levels whereas strong support is placed at $1770 levels. Spot silver price has immediate support at $20.50 levels whereas strong support for spot silver is placed at $20 levels. On MCX, gold price has immediate support at ₹49,900 levels whereas strong support is placed at ₹49,200 per 10 gm levels. They went on to add that MCX silver price has immediate support placed at ₹58,500 levels whereas strong support for MCX silver price is at ₹56,000 levels.

Speaking on reasons for dip in gold price, Vipul Srivastava-Research Analyst at Religare Broking Ltd said, “Gold prices took a breather after a series of gains witnessed in recent weeks. The mighty dollar found the spotlight as it surged close to two-decade highs again with the central banks betting big on interest rate hikes in their battle against runaway inflation. Also, a plunge in energy prices along with industrial metals will likely provide some respite from soaring inflation, which again dented the appeal of bullion. However, worries of a global economic slowdown capped the downside in the precious metal, which gains traction as a safe haven.”