Gold Spot Rockhard Support Zone $1710—1700 – Neal Bhai Reports
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.
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.
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.”
