Gold Prices Fall On Akshaya Tritiya - Is It A Good Time To Buy?

Gold Prices Today: Gold prices in the national capital fell by Rs 900 to Rs 98,550 per 10 grams on Wednesday, reflecting a weak trend in international markets, according to the All India Sarafa Association.

The 99.9% purity gold had closed at Rs 99,450 per 10 grams on Tuesday. Gold of 99.5% purity also dropped by Rs 900, trading at Rs 98,100 per 10 grams, compared to Rs 99,000 per 10 grams on the previous day.

Despite this decline, increased consumer buying on the occasion of Akshaya Tritiya, an auspicious day for purchasing gold, jewellery, and other valuables, helped limit the drop in gold prices. Jewellers are expecting a 35% rise in sales this year, mainly driven by the high gold prices, compared to last year.

Gold prices during Akshaya Tritiya 2024 were Rs 72,300 per 10 grams, which fell on May 10. However, in volume terms, gold sales are expected to remain steady at around 20 tonnes.

Silver prices also saw a significant drop, falling by Rs 4,000 to Rs 98,000 per kg, down from Rs 1,02,000 per kg on Tuesday. In the international markets, spot gold was down by USD 43.35 or 1.31%, trading at USD 3,273.90 per ounce, while spot silver dropped 1.83% to USD 32.33 per ounce.

Also Read: Gold Price Today: Planning To Buy Gold This Akshaya Tritiya? Check Prices in Delhi, Mumbai, Chennai, Bangalore & More

Should You Buy Gold?

Anoop Vijaykumar, Head of Research at Capitalmind Financial Services Pvt Ltd, provided some insights into gold's performance, saying, “Gold’s history reveals its dual nature: an enduring store of value and a volatile investment prone to long drawdowns."

"In spite of its volatility in USD, Gold has been a relatively safer asset for Indian investors on account of the Rupee’s depreciation versus the USD. While it won’t generate cash flows or compound like equities over decades, its low correlation with other assets makes it invaluable for diversification," he explained.

"The best way to include gold in your portfolio is through systematic rebalancing—not as a reactionary move driven by FOMO but as part of a long-term strategy designed to weather market cycles," he said.

On the Multi Commodity Exchange, the most-traded June contract for gold futures plunged by Rs 1,639 or 1.71%, to trade at Rs 93,953 per 10 grams.

In global trade news, US Commerce Secretary Howard Lutnick indicated that the Trump administration had reached its first trade agreement, though he withheld details, stating that the deal was awaiting approval from the other country involved.