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Home / Markets / Commodities /  Gold rate today: Prices move higher ahead of Akshaya Tritiya

Ahead of Akshaya Tritiya 2020, gold prices have rallied despite expectations of tepid demand this year due to lockdown-related restrictions. On Friday, on MCX, gold June futures ended 163 up at 46,590 per 10 gram, extending their 3-day gains to about 1,300 per 10 gram. Silver futures on MCX settled 1% higher at 42,249 per kg.

According to India Bullion and Jewellers Association, indicative price of 999 purity of gold was at 46,607 per 10 gram (without GST) in the Indian bullion market on Friday while that of 916 purity at 42,692 per 10 gram (without GST). Silver was at 42,030 per kg (without GST), according to IBJA. India Bullion and Jewellers Association does not publish rates on Saturday and Sunday.

The website of Tanishq quoted today's price of 22KT gold at 4,534 per gram.

From last year's Akshaya Tritiya, gold prices are now about 43% higher in India. In rupee terms gold is 43% up over Akshaya Tritiya 2019, says Shekhar Bhandari, Senior Executive Vice President & Business Head – Global Transaction Banking & Precious Metals Kotak Mahindra Bank Limited.

Prices in April last year around 3200/3300 a gram and currently around 4600 levels have resulted in an increase in the wealth by 43% year on year for those who have invested, purchased or diversified in gold, he said.

Though some jewellers have offered online route for gold purchases, Akshay Tritya 2020 looks subdued due to the lockdown in many parts of the country on the back of the coronavirus crisis.

According to estimates of India Bullion and Jewellers Association (IBJA), around 23 tonnes of gold was sold in the Indian bullion market last year on the occasion of Akshya Tritiya. But this year, he expects just a fraction of last year's sales even though the government has relaxed some lockdown restrictions earlier this week.

Also, wedding celebrations are not going to take place now, so the demand for jewelleries is very little, said Shantibhai Patel, President, Gem and Jewellery Trade Council of India.

Despite the sharp run-up in gold prices over the past 12 months, analysts remain positive on gold. "Since we have seen such a good run up and liquidation in other assets classed, there could be bouts of correction in the near term. But the medium term picture still looks very promising and expect domestic gold prices could target upwards of Rs.52000 over the next 12 months," said Navneet Damani, VP – Commodities Research, Motilal Oswal Financial Services.

Pankaj Bobade, Head - Fundamental research, Axis Securities, said: "Gold is a hedge against uncertainty and a good investment vehicle, especially in the current scenario. With the COVID-19 pandemic bringing the world economy to a standstill and a possible contraction ahead, gold seems an attractive option." (With Agency Inputs)

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