Gold dips globally, rises in India. Buy now?

Gold prices edged lower on Wednesday (August 6), tracking a firmer US dollar, but analysts suggest investors should stay focused on the bigger picture—an environment supportive of gold over the medium term.

Spot gold was down 0.1% at $3,376.69 an ounce as of 6:31 GMT, while US gold futures slipped to $3,432.40 an ounce, according to news agency Reuters report.

In India, domestic gold prices continued to rise, with 24-carat gold reaching ₹1,02,330 per 10 grams, up ₹110, and 22-carat gold priced at ₹93,800 per 10 grams, up ₹100, as per Goodreturns.

Despite today's dip, the broader narrative around gold remains constructive.

Investors are closely watching upcoming US Federal Reserve appointments and policy

signals, particularly after weak jobs data increased the probability of a September rate cut to nearly 88%, according to the CME FedWatch Tool.

How should investors approach gold now?

Experts advise a staggered buying approach, particularly for long-term investors and those looking to hedge against uncertainty.

“At the prevailing price of ₹1,00,076 per 10 grams, gold reflects a risk-averse sentiment. With expectations of a US rate cut, upcoming inflation data, and geopolitical uncertainties, gold remains a reliable store of

value,” said Aksha Kamboj, Vice President, India Bullion & Jewellers Association (IBJA).

She added that domestic festive and wedding season demand could provide additional support, making current levels attractive for gradual accumulation—especially through digital gold or sovereign gold bonds.

Analysts at Motilal Oswal Financial Services also noted that gold has extended gains for five straight sessions recently, supported by falling US yields and policy uncertainty ahead of Fed appointments.

“Gold has been caught between conflicting forces. The drop in yields has helped, but the US dollar has managed to hold up well. That’s kept prices range-bound, but conviction may return once we get clear signals from the Fed,” Ilya Spivak, Head of Global Macro at Tastylive was quoted as saying in Reuters report.

Domestic tailwinds for gold investors

The Reserve Bank of India’s decision to maintain status quo on interest rates will further contribute to gold’s appeal in India.

“Stable rates foster

predictability for businesses and improve consumer confidence, especially as we approach the festive season,” said Renisha Chainani, Head of Research at Augmont. “With steady liquidity and low inflation, gold demand—both retail and digital—is expected to remain strong.”

Investors looking to hedge against inflation, currency risk, or global uncertainty may consider staggered allocations via SIPs in gold ETFs, sovereign gold bonds, or digital gold platforms, experts say.