Investment in gold on Akshaya Tritiya since 2023 has generated a compounded annual growth rate (CAGR) of 24.5%, and experts believe the metal’s role as a diversifier is still structurally strong. Gold prices in the past one month have seen a decline -- with prices falling by as much as 8% at one point of time, yet analysts say the demand for gold as a haven against economic uncertainty, hedge against inflation, portfolio diversification and liquidity would continue.
“Going ahead also we expect gold, in addition to retail investor allocation will also remain core portfolio for many central banks around the world. However, near term outlook will depend on evolving global macro environment, liquidity, and inflation impact of the ongoing geopolitical scenario,” says Prashant Pimple, CIO – Fixed Income, Baroda BNP Paribas Mutual Fund.
According to Chirag Mehta, CIO, Quantum AMC, investors who purchased gold on Akshaya Tritiya 2023 saw their holdings appreciate by approximately 12.7% over the following year. Those who bought in 2024 recorded 23% gains. Investments made in 2025 witnessed much stronger returns of 39.2%.
Mehta said the pullback in gold prices in recent months is neither unusual nor alarming. “They are a normal feature of any long-term bull market and should be understood as such,” he says while strongly investment in the precious metal.
The recent correction has only improved the entry point, says analysts
According to Kavita Chacko, research head, India, World Gold Council, domestic gold prices, which had been trading at a sustained discount to international prices since mid-February, saw discounts widen further in March – from an average of $15/oz to $46/oz.
Discounts have since narrowed significantly, averaging $8/oz over the first two weeks of April.
“The narrowing is attributed to tighter supply conditions following curbs on imports of platinum alloys (containing more than 1% gold by weight), along with broader restrictions on gold, silver, and platinum jewellery imports,” says she.
Delay in renewing the gold import licences to banks did create a brief scarcity in the market.