Akshaya Tritiya may present a pleasant surprise for gold buyers

CHENNAI: While the outlook for gold remains positive, prices may drop on the Akshaya Tritiya day on April 22, said an analyst at LKP Securities.

For the past one week before Akshaya Tritiya, gold price has been holding near Rs 60,000 per 10 gm, down from Rs 61,350 odd levels in MCX. Thus, investors buying the yellow metal on the auspicious occasion of Akshaya Tritiya shall keenly expect prices to drop somewhat for getting a bargain, said Jateen Trivedi, Vice President (Research), LKP Securities.

According to Trivedi, broadly the outlook remains positive for gold as the interest rate cycle can come to a pause if not reverse in next three months.

The central banks have been buying gold and the modes of buying the metal have increased in recent times, suggesting a forecast of pickup in demand, hence provisions have been made for accumulation for participants, he added.

“We could see gold accumulation and small ticket purchases through digital gold buying platforms, reinforcing the urgent need for a regulatory framework for these,” said Somasundaram P.R., Regional CEO, India, World Gold Council.

Though a major gold buying festival, this year Akshaya Tritiya faces life-time high prices of gold and a lukewarm response from the consumers since the last few weeks, Somasundaram added.

“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 a Akshaya Tritiya surprise for jewellery demand,” Somasundaram said. (IANS)

Also Read: Gold set to touch Rs 68,000 in FY24; prices go up, says experts

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