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Gold price: Yellow metal trades higher, here's what experts say

Gold price: Yellow metal trades higher, here's what experts say

Gold prices were trading flat near a four-month high in the international market, ahead of the release of minutes from the US Federal Reserve's last policy meeting

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Gold spot prices on Wednesday in India were trading at Rs 46,650, up by Rs 19.3 from Tuesday. The global spot prices stood at $1868.9 value today.

On MCX, gold futures fell 0.12% to Rs 48,250 per 10 gram while silver future slumped 0.9% to Rs 72,540 per kg.

Gold prices were trading flat near a four-month high in the international market, ahead of the release of minutes from the US Federal Reserve's last policy meeting.

"Rising coronavirus cases, continuous liquidity injections, rising inflationary expectations, economies growing on the back of debt, Middle East tensions, trade war between US and China and few other factors continue to boost the sentiment and build a strong case for higher gold prices," said Manav Modi, Analyst at Motilal Oswal.

Analysts and fund managers continue to maintain bullish stance on gold. As per Motilal Oswal Investment Services, prices have consolidated over the last few months and recently gained some momentum to return to around $1,800 on the COMEX.

"We are comfortable suggesting buying for a short to medium perspective targeting new life time highs towards $2,050 followed by $2,200," said Modi. On the domestic front, he adds  that the post Budget price correction is a good level to enter once again and sees an immediate targets towards Rs 50,000 and eventually hitting new highs of Rs 56,500 and above over the next 12-15 months.

Kshitij Purohit, Lead-Commodities & Currency at CapitalVia Global Research sees gold hitting the target price of Rs 51,700 in the coming month. "It is a good time for investors to hold gold for medium to long term."

"Investors may step in and increase their allocation to 10-15 per cent of their portfolio at these levels to benefit from the price appreciation that would probably follow as constructive macroeconomic fundamentals weigh in favour of gold," said Chirag Mehta, Senior Fund Manager-Alternative Investments, Quantum Mutual Fund.

"Gold ETFs is backed by 24 karats physical gold and let us sit in the safety and comfort of our home while we buy and sell gold as and when we want. These instruments are traded on the exchanges at the prevailing market price of physical gold with no making charges eating into investor returns," added Mehta.