Gold Demand Expected to Thrive Ahead of Akshaya Tritiya Amid Global Uncertainties
Gold demand set to remain resilient ahead of Akshaya Tritiya; Bullion remains preferred safe-haven for wealth creation
The Economic TimesImage: The Economic Times
Gold demand remains strong ahead of Akshaya Tritiya, set for April 19, as retail investors view bullion as a safe-haven for wealth creation. Despite high prices, the overall value of demand is robust, with gold prices up approximately 14-16% year-to-date, reflecting ongoing geopolitical tensions.
- 01Gold demand is firm ahead of Akshaya Tritiya on April 19.
- 02Despite high prices, the overall value of gold purchases remains strong.
- 03Younger consumers are shifting towards lightweight and contemporary gold jewellery.
- 04Investment-oriented products like coins and small bars are gaining traction.
- 05Gold prices have rebounded about 30% from March lows, trading above ₹1,50,000.
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As Akshaya Tritiya approaches on April 19, gold demand in India is anticipated to remain resilient, driven by retail investors seeking wealth creation through bullion. Despite elevated prices, the overall value of gold purchases is expected to be strong, with prices rising approximately 14-16% year-to-date. Sachin Jain, Regional CEO of the World Gold Council, emphasized that the festival symbolizes prosperity and long-term value, making it a significant occasion for gold purchases. While jewellery volumes may be moderate due to high prices, there is a notable shift in consumer behavior, particularly among younger buyers who prefer lightweight and contemporary 22k and 18k jewellery. Additionally, investment-oriented products such as coins and small bars are becoming increasingly popular, reflecting a transition towards practical investment options. A report from Kotak Neo Research highlights that gold demand will likely remain robust in value terms, supported by ongoing geopolitical tensions and central bank diversification from fiat assets. With gold trading above ₹1,50,000, having rebounded about 30% from its March lows, the outlook for bullion remains positive as the festival begins.
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The strong demand for gold during Akshaya Tritiya indicates a continued cultural affinity for gold investment, which may influence market dynamics and retail strategies.
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