Gold prices may fall below Rs 50,000 in coming days; should you buy or wait?

Gold prices have plunged sharply from around Rs 60,000 to Rs 52,500 in the past two weeks amid a strong rupee game. The falling prices of the yellow metal should be used as a golden opportunity to buy it, suggest experts who expect the (gold) rates to further dip in the coming days.

Gold prices that almost hit Rs 60,000-mark before coming down significantly to Rs 52,155 (per 10 gram) on Friday may go down below Rs 50,000 per 10 gram in the days to come amid high volatility in international markets, experts opine.

Also Read: Gold discounts reach 5-month high as easing prices fail to revive demand

Shantibhai Patel, President of the Gems and Jewellery Trade Council of India (GJTCI) told Ahmedabad Mirror that he expects a further reduction of "$20 to $30 in the gold prices" and suggests retail buyers to purchase the yellow metal "in small quantity at intervals so as to take advantage of volatility". Meanwhile, experts are also of the opinion that retail gold buyers and small investors should invest in Gold ETF (Exchange Traded Fund).

A gold ETF is a commodity-based mutual fund (MF) that can be bought and sold on stock exchanges just like shares. Money can be invested in this exchange traded product either in lump sum or every month.

Vaibhav Shah, Managing Director, Monarch Networth Capital Ltd told the publication that "buying gold at any price is profitable in the long run" and suggested that investors should "invest in gold in two ways: buy physical gold and invest in gold ETF for gains in the long term."

Also Read: Gold price rises after 2 days; silver rates at Rs 65,500

Gold prices slipped by Rs 252 to Rs 52,155 per 10 grams in the national capital on Friday amid a stronger rupee, according to HDFC Securities.

The precious metal had closed at Rs 52,407 per 10 grams in Thursday's (August 27) trade. Silver prices, however, rose by Rs 462 to Rs 68,492 per kg compared to the previous close of Rs 68,030 per kg.

The rupee strengthened 43 paise to end at 73.39 (provisional) against the US dollar on Friday, supported by persistent foreign fund inflows and weak American currency.

In the international market, gold depicted a strong trend and was trading with gains at 1,949 per ounce and silver at $27.33 per ounce.

Also Read: Sixth tranche of Sovereign Gold Bond opens on Aug 31; check out issue price