Analysts say that maybe the market is oversold. The gold market is looking to close the week down around 4%, its worst weekly close since mid-June 2021. But its current price level of around $1,800 an ounce could put gold at risk of a bigger selloff, according to analysts, states Kitko.com. On the other hand, livemint.com stated that investors preferred to park their funds in the safety of the US dollar and the US bonds while moving out of the precious metal, quoting industry experts. On account of dollar index surging to fresh two decades high, gold price continued its losing streak for fourth straight week. At Multi Commodity Exchange (MCX), gold rate on Friday closed at ?49,909 per 10 gm, logging weekly loss of around 2.86 per cent. Spot gold price closed at $1810 per ounce, breaching key support placed at $1820 levels. Some commodity market experts believe that the key headwind behind the slide in precious metal price is the greatly impressive surge in the dollar index towards a fresh two-decade high.

The reason why investors are moving out of the precious metal is due to the fear of central banks’ monetary tightening path and the enduring Russia-Ukraine war affecting global economic growth. Live mint has quoted experts who said that the dollar index has hit a fresh two decades high and hence this trend is expected to continue in the near term where spot gold rate may go up to $1780 per ounce whereas MCX gold rate may go up to ?48,800 per 10 gm levels. They advised precious metal investors to wait for some time and buy gold at around key support levels of $1780 in spot market and ?48,800 levels on MCX as broader outlook for gold is still positive.