Gold prices erase weekly gains as US dollar bounces back to one week high. Should you buy in this correction?

livemint.com:

Gold rate today: After hitting $1,985 levels in international market and coming close to ₹60,000 per 10 gm levels in the domestic market, gold prices erased most of its weekly gains on Friday session in the week gone by. The demand for the precious yellow metal diminished as the US dollar bounced back from its 15-week low to one week higher levels. Gold future contract for August 2023 expiry ended ₹254 per 10 gm lower at ₹59,298 levels on Multi Commodity Exchange (MCX) while the yellow metal finished 0.43 per cent lower at $1,960.80 per ounce levels in international spot market.

Silver price finished ₹483 per kg lower at ₹74,966 levels, erasing its weekly gains during last trade session in the week gone by. In international market, silver rate today is $24.57 per ounce. On why gold prices erased weekly gains and nosedived from nine-week highs, Sugandha Sachdeva, Executive Director & Chief Strategist at Acme Investment Advisors said, "Gold prices closed almost flat for the week as the metal erased all of the gains seen early this week.

The metal approached levels close to Rs. 60,000 per 10 gm but reversed its course, ending with marginal losses. The weakening of the dollar index, which briefly dipped below the critical 100.50 mark, initially supported gold's rise.

However, as the greenback recovered to a one-week high, the appeal of precious metals diminished. Additionally, with market sentiment favouring risk-on assets, interest in precious metals waned. In the international markets too, prices were rejected by the levels of around $1,985 per ounce, from where they reversed course on the downwards incline." Speaking on why gold has become a risky asset all of a sudden, Praveen Singh, Associate VP — Fundamental Currencies