Gold demand likely to rise by 10-15 pc on Akshaya Tritiya despite record-high prices

New Delhi, April 28 (IANS) Despite its prices hovering near record highs, the demand for gold could see a 10-15 per cent increase during Akshaya Tritiya, which is on April 30 this year, experts said on Monday.

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

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 per cent 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 Rs 95,420 per 10 grams on Monday.

Meanwhile, 22-carat gold was priced at Rs 91,300 per 10 grams, and 18-carat gold at Rs 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 Rs 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 Rs 1,00,000 per 10 grams, jumping by Rs 3,300 from Rs 96,670.

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

October futures on the Multi Commodity Exchange (MCX) also crossed the Rs 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.

--IANS

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