Demand for precious gold is expected to be lukewarm this Akshaya Tritiya, being observed on Friday, as localized lockdowns to control the spread of Covid infections will keep most jeweler shops shut.
The occasion is considered auspicious by many to purchase gold, silver and other metals in India the world s second-biggest bullion consumer. This will be the second year in a row that pandemic-related restrictions will hurt jewellery sales on the otherwise busiest business day in bullion trade.
Analysts and wealth advisers say those eager to make bullion purchases this Akshaya Tritiya can go for paper gold options like sovereign gold bonds, gold futures, exchange-traded funds, fund of funds or digital gold.
Gold prices hit eight-month low - Should you invest now?
Most industry experts expect a further fall in the gold price. With yields rising and technical levels under fire, the fall in gold prices may continue, they say. Some even expect the prices to fall to Rs 43,000 levels
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After a huge rally last year, gold prices have softened to Rs 45,980 per 10 gram on Friday, to hit its eight-month low. The prices of the yellow metal have fallen by over Rs 10,000 or 18% from the highs of Rs 56,200 per 10 gramme in August 2020. Year to date, gold prices are down by about 8% this year. The rise in the US Treasury yield and stronger dollar, optimism of a larger economic stimulus package, and the vaccination drive have led to downside pressure on gold prices.
Market experts and jewellery industry welcome duty cut in gold; price falls nearly 2%
India is the world’s second-largest gold consumer after China. India is slashing the rate for the first time in eight years to curb smuggling of the yellow metal into the country. February 01, 2021 / 06:23 PM IST
Gold prices edged lower to Rs 48,409 per 10 gram as the government reduced customs duty on gold and silver to 7.5 percent from 12.5 percent.
However, there will be a 2.5 percent cess a separate tax on imports on both the metals, called the Agriculture infrastructure and development cess.
India is the world’s second-largest gold consumer after China. India is slashing the rate for the first time in eight years to curb smuggling of the yellow metal into the country.