New Delhi, April 29: Despite record-high gold prices, demand for the yellow metal is expected to remain strong this Akshaya Tritiya, driven by the consistent returns gold has delivered over the past two years. Industry experts anticipate robust consumer interest, especially in lightweight and studded jewellery, as buyers adapt to rising rates.
Gold prices have surged past ₹1 lakh per 10 grams, yet buyers remain undeterred. Rajesh Rokde, Chairman of the Gem and Jewellery Council of India (GJC), attributed this continued enthusiasm to gold’s reliable returns. “Last Akshaya Tritiya, gold was priced at ₹72,000 per 10 grams. In 2023, it was ₹58,000. With an annual growth rate of 20–25%, gold has become a preferred investment,” Rokde said.
India imported 802 tonnes of gold in 2024, up from 741 tonnes in 2023, further highlighting the sustained demand despite the price rise. “This increase in both value and volume underlines strong market sentiment,” Rokde added.
Saurabh Gadgil, Chairman and Managing Director of PNG Jewellers, pointed out that Akshaya Tritiya coincides with a busy wedding season this year, boosting both purchase and delivery volumes. “Consumers are also exchanging old gold for new bridal jewellery to offset higher costs,” he said. The rising prices, he noted, have steered many buyers towards more affordable studded jewellery options.
While festive demand remains upbeat, commodity analysts urge caution regarding gold’s investment appeal in the near term. Ajay Kedia, Director of Kedia Advisory, stated that although gold has returned around 32% since last Akshaya Tritiya, returns in the coming year may taper off. “Gold prices are expected to stabilize between ₹86,000 and ₹87,000 per 10 grams, with annual gains likely around 6–7%, in line with inflation. Going forward, gold should primarily be bought for ceremonial use rather than as an investment,” he advised.
Kaynat Chainwala, AVP of Commodity Research at Kotak Securities, highlighted that global economic trends are influencing domestic gold prices. “Easing U.S. auto tariffs and improving investor sentiment have already led to declines in COMEX and MCX gold. Uncertainty over trade negotiations and upcoming economic data will likely keep prices range-bound in the near term,” she said. However, any escalation in geopolitical tensions could renew support for gold.
Manav Modi, Senior Analyst at Motilal Oswal Financial Services, recommended a “buy on dips” strategy. He identified key support levels around ₹90,000–₹91,000 and resistance near ₹99,000, with a long-term target of ₹1,06,000.
(WIth ANI inputs)
