Hyderabad: As May 10 approaches, people all over the country are gearing up to celebrate Akshaya Tritiya, a festival known for its association with gold buying. There's a widespread belief that the gold purchased on this day is special—it's said to be immune to destruction. Because of this belief, people in many parts of the country engage in gold shopping during this time. Even though gold prices are high, traders are still hopeful, expecting strong demand for gold this year.
Purchasing gold is one of the prominent customs during Akshaya Tritiya, as it is seen as a symbol of enduring wealth and divine favor. Many choose to buy gold coins, viewing it as a way to ensure their offerings are pleasing to the gods.
This day holds special significance in Hindu mythology as it marks the birth of Akshay Kumar, the son of Lord Brahma. In different parts of the country the story associated with the day is different. This adds a deeper layer of meaning to the celebration, reinforcing its roots in ancient traditions and beliefs.
In India, there's a strong conviction that certain items, like gold coins and jewellery, should only be acquired on auspicious occasions, and Akshaya Tritiya is considered one of the most propitious days for such purchases. As the date approaches, many individuals are already browsing online platforms to secure their gold coins in anticipation of the festivities.
Speaking to ETV Bharat, Saiyam Mehra, Chairman of the All India Gem and Jewellery Domestic Council, mentioned that the peak price of gold in India had surpassed 70,000 rupees. Currently, it has slightly decreased from its peak. He predicts that in the coming months, the price may further decrease and could reach around 68,000-68,500 rupees per 10 grams. However, looking ahead, it is expected to rise again and may surpass 75,000-76,000 rupees. Therefore, post-July, the prices of gold are anticipated to start increasing.
Mehra stated that there is an expectation of 20-25 tons of gold sales on Akshaya Tritiya this year, compared to 22-23 tons last year. In terms of regional distribution, South India accounts for 40 percent of the total sales, while West India accounts for 20-25 percent. The East part of the country contributes around 20 percent, and North India purchases only 10 percent of the gold. Mehra attributed this to the preference for Dhanteras shopping over Akshaya Tritiya in the North.
Additionally, he mentioned that due to fewer weddings in the next two months, there is an expectation of lower demand for heavier jewellery. However, the trend of importing 800 tons of gold annually is likely to continue. With no wedding season coinciding with Akshaya Tritiya this year, sales of bridal jewellery are expected to shift towards lighter ornaments. Moreover, purchases for investment purposes and spiritual beliefs are also expected to boost sales.
Anuj Gupta, Head of HDFC Currency and Commodity at HDFC Securities, shared with ETV Bharat that as Akshaya Tritiya is an auspicious day, it's an opportune time to start investing in gold. He noted a recent positive trend in gold prices and anticipates further increases, potentially leading to positive returns. Gupta expects gold to potentially reach levels of 74,000 to 75,000 rupees per 10 grams by the end of the year, or $2400 per ounce.
He attributes this positive outlook to geopolitical tensions and central bank buying, which support gold prices. Additionally, he mentioned China's recent gold purchases, which are seen as positive for bullions.
Gold Rates on Akshay Tritiya
- ₹60,800 – May 3, 2023
- ₹50,900 - May 3, 2022
- ₹47,400 - May 14, 2021
- ₹46500 - April 26, 2020
- ₹31,700 - May 7, 2019
