`Gold Prices May Dip For Correction In Short Term`: Expert

New Delhi: Gold prices may dip for correction in the short term and the bias will remain negative for the yellow metal, an expert said on Friday. According to Saumil Gandhi, Senior Analyst - Commodities, HDFC Securities, prices of gold slightly recovered on Friday, with the spot gold price at Comex trading up by 0.17 per cent at $1,917 per ounce. The gold August future contract at MCX was trading up by 0.10 per cent at Rs 58,255 per 10 grams by noon.

"In the previous session, gold prices corrected nearly 1.0 per cent following a wave of interest-rate hikes from central banks and more hawkish commentary from Federal Reserve Chairman Jerome Powell," he said.

Gandhi said investor sentiment was marred after the Bank of England delivered a surprise 50 basis point rate hike, which was larger than the market had anticipated as the central bank struggles to tame the highest inflation.

Comex spot gold prices have fallen nearly 8 per cent since rising to near a record high in late May.

"Going forward, we expect short-term bias to remain negative in gold, and gold prices may witness a dip correction to $1,884/oz below the $1,903/oz level," he said. For the day, Comex spot gold has support at $1,903/oz and resistance at $1,935/oz. MCX Gold August future has support at Rs 57,845 and resistance at Rs 58,610.