Akshaya Tritiya 2024: With no let up in prices, can gold maintain its shine for Indians this festival season?
Akshaya Tritiya 2024: With no let up in prices, can gold maintain its shine for Indians this festival season?
Gold prices edged higher on Tuesday, steered by bets that the U.S. Federal Reserve would cut interest rates later this year and safe-haven demand for bullion as Gaza ceasefire remains uncertain. Spot gold was up 0.1% at $2,324.75 per ounce, after rising more than 1% in the previous session.
As we approach Akshaya Tritiya a time when gold investment is traditionally favoured, this hike has sparked a question: Can gold maintain its allure amid skyrocketing prices?
“We believe that while prices may fluctuate, the essence of Akshaya Tritiya remains unchanged—a day synonymous with good fortune and new beginnings. We see this as an opportunity to celebrate the true value of gold beyond its market fluctuations. Gold expresses emotions beyond material worth because of its natural grace and an old connection with tradition. It is a symbol of heritage, beauty, and enduring worth—a sentiment that resonates strongly during Akshay Tritiya,” says Leshna Shah, founder at Irasva Fine Jewellery.
Akshaya Tritiya, which is on May 10, has always seen fervent gold purchases stemming from the belief that investments made on this day would never diminish, thus bringing everlasting prosperity.
Rohan Narang, Director at Hazoorilal Legacy, said, “Gold is a symbol of prosperity, purity and eternal beauty. Its importance in our lives goes beyond monetary value – it symbolises our hopes, dreams and aspirations for the future. Therefore, we are confident that people will continue to adopt the tradition of buying gold, inspired by its intrinsic value in our hearts and minds.”
“Even if gold prices this year may be increasing quickly, it’s important to see the bright side of things. It is also important to understand that the rise in prices reflects not only market conditions but also the true worth of gold as a tangible asset with enduring value,” added Piyush Gupta, Director at PP Jewellers by Pawan Gupta.
However, with the current economic crisis impacting the purchasing power, people might not indulge in buying gold as a ritual; instead, they might look at it as an investment tool or even as a buffer for difficult times. Inflation concerns, currency debasement fears, and the potential for continued political and financial instability globally are factors that continue to attract investors to gold.
Gold trend this Akshaya Tritiya
Despite the soaring prices, gold industry experts are optimistic. Given its nature as a strategic asset, market analysts believe that gold continues to be seen as a versatile and effective diversification tool in the current volatile economic climate.
“Due to our past experiences in this industry, we believe that despite the current market dynamics, gold will remain an investment in sentiment and tradition. Hence, we are confident that gold will maintain its shine this Akshaya Tritiya, despite this increase in gold prices,” says Shah.
Gupta says, “We have also observed that despite the current price trends, gold remains a cherished investment and a symbol of auspicious beginnings. We are optimistic with regard to Akshaya Tritiya this year. In India, it is celebrated as an auspicious time to buy gold and is considered a sign of prosperity and abundance.”
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