|
This Akshaya Tritiya, an auspicious day in the Hindu calendar considered apt for buying gold, the demand for the precious metal remained relatively weak, with analysts and jewellers attributing it to its high prices. Publicly available data showed that international gold prices rose at an unprecedented pace in 2025, soaring over 20 per cent. Over the past year, they have risen about 40 per cent.
Analysts say that buyers are staying away from purchasing gold jewellery or investing in the metal, owing to an unexpected rise in prices this Akshaya Tritiya. The purchase of precious metals such as gold and silver is specially timed by many on this auspicious day every year. Gold prices, both in India and world over, are trading at their all-time highs, due to its safe-haven appeal amidst ongoing trade uncertainties. The uncertainties surrounding Trump's reciprocal tariffs plan and counter-tariffs have come as a shot in the arm to international gold prices, which have been moving northward for a considerable period. According to the World Gold Council, India's gold demand in the first quarter of 2025 stood at 118.1 tonnes, a total 15 per cent drop from 139 tonnes in the same period of last calendar year. Manoj Kumar Jain, a commodity research analyst at Prithvi Finmart, said, "This Akshaya Tritiya, the gold buying has been weak, perhaps due to high prices. Demand remains about 25 per cent lower than the previous year. Gold remains out of reach for most consumers. Also, people are increasingly exchanging old gold for new, rather than making fresh purchases." Echoing similar opinion, Hareesh V, Head of Commodities, Geojit Investments Ltd, said that people are increasingly opting for gold ETFs and digital coins given the recent unprecedented rise in gold prices. On Wednesday, on the occasion of Akshaya Tritiya, gold prices have slumped on both the exchange and physical stores. On MCX, the gold futures were trading at Rs 94,380 per 10 grams, and in physical stores at Rs 95,000-96,000 per 10 grams. Ajay Kedia, head of Mumbai-based advisory firm Kedia Advisory said, "For the year ahead, it is advisable to buy gold only for ceremonial purposes and not with an investment motive, as returns are expected to moderate around 6-7 per cent, in line with inflation." According to Colin Shah, MD, Kama Jewelry, "With gold prices often hitting new highs lately, we are hopeful that consumers will consider this time as the most appropriate time to buy jewellery of their choice as gold prices are expected to see more upswing in the near future." Confederation of All India Traders (CAIT) estimates that gold jewellery and related items worth approximately Rs 12,000 crore were sold across the country on the occasion of Akshaya Tritiya. (ANI)
|
