Gold price down by over ₹600 ahead of Akshay Tritiya, demand likely to rise by 10-15%

The gold prices on Tuesday saw a decline of over ₹600 around 5 pm, right before the auspicious Akshay Tritiya.

At 5.15 pm, the gold prices for 10 gm 24-carat gold stood at ₹95,413, with a drop of ₹615 in its value.

Around 3.30 pm on Tuesday, at the time of equity markets closing, the gold prices were down by ₹691.

Akshaya Tritiya holds special significance in Hindu culture, and buying gold on this day is believed to bring prosperity and good fortune to households.

Despite its prices hovering near record highs in last few days, the demand for gold could see a 10-15% increase during Akshaya Tritiya on Wednesday, said the experts.

Kama Jewellery Managing Director, Colin Shah, said that due to the cultural importance of the day, gold buying among Indian consumers typically peaks during the festival.

He added that positive sentiment among buyers could lead to a 10-15% rise in jewellery sales this season.

Gold prices have remained elevated amid global economic uncertainties. According to the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold stood at ₹95,420 per 10 grams on Monday.

Meanwhile, 22-carat gold was priced at ₹91,300 per 10 grams, and 18-carat gold at ₹77,290 per 10 grams.

Shah further noted that young consumers are increasingly preferring lightweight jewellery for daily use – a trend that is gaining momentum in the market.

Last week, gold prices in India briefly touched ₹1,00,000 per 10 grams for the first time ever. However, following a decline in global prices, domestic rates have also seen some correction.

On April 22, the price of 24-carat gold was at ₹1,00,000 per 10 grams, jumping by ₹3,300 from ₹96,670.

The price of 22-carat gold climbed to ₹97,600 per 10 grams, while 20-carat gold reached ₹89,000, and 18-carat gold touched ₹81,000 per 10 grams on the same day.

October futures on the Multi Commodity Exchange (MCX) also crossed the ₹1 lakh mark on April 22.

Experts believe the sudden spike in gold prices is mainly due to growing global demand for gold as a safe-haven investment.

(with inputs from syndicated feed)