Gold hovers around Rs 50k! Is it a good time to buy? 

Markets are crumbling amid inflation worries, continuous FIIs outflows and weak global cues. The 30-share BSE Sensex tanked over 1,000 points to hit an intraday low of 53,047.75 and the NSE Nifty tumbled over 300 points to 15,848.10.

As an investor, you might be wondering where to park your funds right now. Well, it's a fact that gold is used as an inflation hedge. On Wednesday, prices on the international market touched a three-month low.

The drop in rates came as an elevated dollar held down prices while investors await US monthly inflation data, which might impact the Federal Reserve's monetary policy stance and demand for bullion.

On the Multi Commodity Exchange of India Limited (MCX), gold futures were trading at Rs 50,850 on Thursday.

So as gold hovers around Rs 50,000 per 10 gram, should you consider investing in the yellow metal?

According to Ravi Singh Vice-president and Head of Research, ShareIndia, gold may witness some more correction to trade near the levels of 49,500 in the coming weeks.

He added that higher inflation and geopolitical volatility are supporting gold prices, however, various physical tightening measures by central banks to curb inflation and a stronger dollar are pushing gold to lower levels. Investors may go long in gold around 49,500 - 50,000 levels for long-term gains.

Amit Khare, AVP- Research Commodities, Ganganagar Commodity Limited said, "Gold and Silver prices are trading down in the morning trading session. On the Multi Commodity Exchange (MCX), June Gold futures are trading 50803, 0.19% down and July Silver is trading at 60338, 0.68% down today due to high dollar index prices."

He added that the dollar index futures are trading at 104.145 which is a lifetime high. Now the dollar index is making a temporary top and indicating some profit booking as per the technical chart.

"Investors are looking for some safe-haven investment in the current situation. Gold and Silver prices are continuously falling for the last 3 weeks and prices are trading at 3 month low," he said.

"If we discuss the technical levels as per June contract chart, 50300-49800 are the best prices for Gold investors/buyers to make a fresh investment for 3 to 5 per cent return in a short term 1-2 month. Price can also test the 53,400 level in the next 3-month time period," he added.

"Gold has seen some reversals after the increase in inflation supported by a pullback in the dollar and decreasing US treasury yields expecting more hikes in the future. A weaker dollar will make gold attractive to outsiders thus increasing the demand," Manoj Dalmia Founder and Director-Proficient Equities Limited told Business Today.

"Looking at gold futures continuous current contract, it might hit the levels of 52,179 in the near term. Gold can be bought by users in the short term with a stop loss of Rs 50,198 and a target of 52,198," he added.