NEW DELHI: Experts see good demand for gold during Hindu festival Akshaya Tritya, also known as Akha Teej on Tuesday. People of Hindu and Jain communities majorly buy gold on this festival as it is considered auspicious to buy the yellow metal on this day.Also, with Gold hallmarking being made mandatory by the Government from June 2021, consumers’ trust has further strengthened in the precious metal, say experts.
“Gold prices in the last ten to twelve days have declined by Rs 3,000-Rs 4,000. We see a good demand for Gold this year as with the relaxing of Covid restrictions, as huge numbers of weddings are expected to happen,” Surendra Mehta, National Secretary at India Bullion and Jewellers Association Ltd told TNIE.“Buying gold will benefit consumers with the depreciation in rupee. Amid geopolitical tensions, the rupee may depreciate further which will give further boost to gold prices,” Mehta further added.
Meanwhile, according to Ajay Kedia, Managing Director, Kedia Advisory, gold overall look firm with ongoing geo-political tension, and with soaring inflation in most countries. Gold may return to its label of a hedge against inflation, he said.
“Gold has risen over 7% since Akshay Tritiya last year with domestic gold prices well off the highs and increasing volatility in equities. It is likely that we may see good buying interest this year. It is suggested to stay invested and one can make an investment in gold ignoring the market timing when investing for the long term.” Kedia suggests dedicating 5-10% of one’s portfolio towards gold..On Monday, at MCX, Gold was trading at Rs 50,600 per 10 grams, 2% down from the previous close.
MCX gold trades above 50k
Amid geopolitical tensions, the rupee may depreciate further which will give further boost to gold prices. On Monday, at MCX, Gold was trading at Rs 50,600 per 10 grams, down 2%