Gold prices on Wednesday saw a slight decline thanks to a strong dollar exerting pressure on prices. Investors remained cautious, awaiting US data to glean insights into potential rate cuts by the Federal Reserve. At 1335 GMT, spot gold experienced a slight decline of 0.19 per cent, reaching $2,309.29 per ounce. Simultaneously, US gold futures for June delivery dipped by 0.3 per cent to $2,317.00 per ounce.
In India, Akshaya Tritiya, observed this year on May 10, is traditionally regarded as an auspicious occasion for purchasing gold. Despite the recent uptrend in gold prices, experts foresee strong buying activity during this period.
Also read: Catch the glitter: Silver up 11% YTD on import volume, likely to outshine gold in near-term; How should you invest?
Ahead of the auspicious occasion, the precious metal price declined by ₹150 to touch ₹72,300 per 10 grams on Wednesday in Delhi, according to HDFC Securities.
Gold price trend during Akshaya Tritya
According to analysts, gold prices often experience fluctuations during the Akha Teej festive season in India.
“During the Akha Teej festive season, gold prices often experience fluctuations due to increased demand in the physical market, driven by auspicious events. While gold is considered auspicious for buying during Akha Teej, current prices around ₹71,000 may be slightly expensive. Therefore, it is advisable to accumulate gold in smaller denominations rather than making large purchases,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.
According to a report by brokerage firm Motilal Oswal (MOFSL), gold and silver have seen significant year-to-date gains of 13 per cent and 11 per cent, respectively, since the beginning of the new year cycle, which commences with the auspicious occasion of Akshaya Tritiya.
Also read: When gold prices spiked, investors saw their chance
Is Akshaya Tritiya the right time to invest in gold?
MOFSL remains optimistic about both gold and silver, recommending purchasing of precious metals during declines, with price targets set at ₹75,000 for gold and ₹1,00,000 for silver in the domestic market and $2,450 for gold and $34 for silver on the Comex exchange.
Market experts further suggested that investors should consider other factors such as market trends, which are a bit volatile, geopolitical events in the Middle East, interest rate cut delays, and their own financial goals before investing in gold during Akha Teej.
“Since domestic gold prices are hovering near record highs, there is a chance of a technical correction in the immediate run. But in the long run, firm overseas prices, increased physical demand, and a weak INR would assist prices to retain their bullish outlook. Hence, cautious buying in minimal quantities is recommended at this Akshaya Tritiya,” said Hareesh V, Head of Commodities, Geojit Financial Services.
Also read: Gold and silver prices today on 08-05-2024: Check latest rates in your city
Gold is considered one of the best long-term assets, and it offers both safety and decent returns to its investors. Domestic gold has more than doubled in the last five years, and it gained 10 times since 2003. So, investors can make use of every price correction to add the metal to their portfolio for long-term benefits, according to analysts.
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Published: 08 May 2024, 11:05 PM IST