Akshaya Tritiya: Gold prices today at 2-month lows, down ₹5000 from March high
Gold prices have come down to around ₹50,500 per 10 gram from ₹55,000 in March and this is expected to boost consumer sentiment on Akshaya Tritiya
Gold prices in India were steady in futures market on the auspicious day of Akshaya Tritiya and jewellers say that the recent price correction could help boost demand. On MCX, gold futures were flat at near two-month lows of ₹50,755 per 10 gram while silver was up 0.3% to ₹63,115 per kg. Gold rates in India have fallen sharply from March highs of ₹55,600 per 10 gram as firm US bond yields and a strong US dollar diminished the safe-haven appeal of gold.
Gold prices have come down to around ₹50,500 per 10 gram from ₹55,000-58,000 per 10 gram and this is expected to boost consumer sentiment on Akshaya Tritiya, All India Gem and Jewellery Domestic Council Vice Chairman Shyam Mehra told PTI, adding that “jewellers across the country have opened their stores early across the country and there is a strong momentum in footfalls since morning."
Kalyan Jewellers Executive Director Ramesh Kalyanaraman was also optimistic of demand on Akshaya Tritiya, saying that the ongoing wedding season has also created a positive market sentiment.
“Akshay Tritiya is among one of the biggest jewellery buying festivals in India, during which jewellers generally record higher sales. Moreover, coupled with wedding season and recent gold price drop, demand has improved significantly. Bridal jewellery commands the maximum share in jewellery demand, it tends to be concentrated in months considered auspicious for weddings," said Suvankar Sen, MD & CEO, Senco Gold and Diamonds.
“Along with bridal jewellery and light weight collections, traditional gold bars, coins and silver utensils are also marking good impact on sales numbers," he added.
In global markets, gold hovered near two-month lows, as investors braced for more aggressive rate hikes from the US central bank. Expectations of faster rate hikes have boosted the dollar and Treasury yields and lifted the opportunity cost of holding gold. Spot gold was flat $1,863.16 per ounce.
The Fed is expected to raise rates by 50 basis points at the end of a two-day meeting on Wednesday but traders would be keenly watching Chairman Jerome Powell's comments for further signals on rate hikes.
While gold is perceived as an inflation hedge, higher U.S. interest rates and bond yields lift the opportunity cost of holding zero-yield bullion.
Among other precious metals, spot silver edged up 0.3% at $22.69 per ounce, platinum firmed 1.4% to $948.30, and palladium rose 2% to $2,262.57. (With Agency Inputs)
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