Gold rates today at three-month low. Should you buy in this correction?

livemint.com:

Gold rate today: After losing to the tune of 3.30 per cent the June month rally, gold prices ushered in the month of July on a promising note. Despite US Fed rate hike concern has been working as a taper for the gold price rise, bargain buying has supported bounce back in the bullion metal from the support levels. Gold future contract on Multi Commodity Exchange (MCX) for August expiry ended ₹391 per 10 gm higher on Friday in the week gone by, logging to the tune of 0.65 per cent intraday rise on the weekend session.

However, this rally came only after the gold price on MCX hit three-month low of around ₹58,350 per 10 gm levels. On why gold price are giving such movement, Sugandha Sachdeva, Executive Director & Chief Strategist at Acme Investment Advisors said, "Gold prices have started the first week of July on a promising note, after witnessing a correction of around 3.30% in June. Concerns about the US Fed keeping interest rates elevated for a longer period had suppressed gold prices.

However, the yellow metal has been supported by bargain buying at lower levels as well as by some signs of a cool-off in the US labor market and a decline in the dollar index. The US jobs report for June showed that the economy added 209,000 jobs, below the consensus forecast of 225,000. However, private sector payrolls rose by more than double the forecast." "This suggests that the labour market is still strong, but there may be some signs of a slowdown.

This has eased concerns about the Federal Reserve raising interest rates too aggressively. This has supported gold prices, which are seen as a hedge against inflation and rising interest rates," Sugandha added. Expecting bounce back in gold prices in near term, Nirpendra Yadav, Senior