The recent surge in gold prices, which is sustaining over ₹60,000 per 10 grams, is likely to dampen consumer demand this Akshaya Tritiya. Currently, the retail gold price in the domestic market is around ₹62,000 per 10 grams level.
Jewelers are expecting a 20 percent decline in sales in volume terms. “We expect a 20 percent dip in volume from last year,” All India Gem and Jewellery Domestic Council (GJC) chairman Saiyam Mehra told PTI.
World Gold Council Regional CEO, India, Somasundaram PR said that gold purchases are an inseparable part of Akshaya Tritiya celebrations for millions of Indians.
“Though a major gold buying festival, this year Akshaya Tritiya faces lifetime high prices of gold and a lukewarm response from consumers over the last few weeks. We could see gold accumulation and small ticket purchases through digital gold buying platforms see faster growth, reinforcing the urgent need for a regulatory framework for these. Recent tax changes have put gold funds at a tax disadvantage which could offer an unintended advantage to digital gold buying. However, given the strong cultural connect, any short-term softening of price could mean an Akshaya Tritiya surprise for jewelry demand,” said Somasundaram PR.
Also Read : Akshaya Tritiya 2023: Is it wise to invest in gold, silver today — explained
US Fed rate hike buzz
Gold prices are expected to remain under sell-off heat as there is abuzz about a 25 bps interest rate hike by the US Federal Reserve due to the looming economic slowdown caused by the banking crisis in the US. This US Fed rate hike speculation led to a strong rebound in the US dollar as Dollar Index rebounded from its one-year low of 100.80 last week.
However, Anuj Gupta of IIFL Securities advised gold investors to maintain buy on dips as the yellow metal price is expected to rebound once there is an ease in US dollar rates.
This year, Akshaya Tritiya is being celebrated on 22 April as per Drik Panchang. On this occasion, it is common for people to buy gold or gold jewelry as it is considered auspicious and believed to bring prosperity and wealth. Additionally, this day is often chosen for planning weddings and other auspicious events.
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