Gold to stay in focus despite thanks to Akshaya Tritiya

The world’s largest buyer of the yellow metal, India, will witness Akshaya Tritiya celebrations the next week. It’s among the major biggest gold buying occasions in the country apart from Dhanteras. Even the wedding season has gathered momentum and will extend until July. So how exactly is the demand for gold, as of now, and what is the overall scenario?

The world’s largest buyer of the yellow metal, India, will witness Akshaya Tritiya celebrations the next week. It’s among the major biggest gold buying occasions in the country apart from Dhanteras. Even the wedding season has gathered momentum and will extend until July. So how exactly is the demand for gold, as of now, and what is the overall scenario?

Demand for gold, though stable, is not exactly great ahead of Akshay Tritiya with traders and manufacturers already done with their respective purchases, market insiders mention. Retail sales, on the other hand, are gradually inching up, albeit currently down as buyers are waiting for the auspicious day.

Gains for gold capped

A Reuters report on May 8 stated:  “Global gold edged up, supported by demand from China and a tight physical market, but gains were capped by strong equities and a drop in bullion exchange-traded fund holdings to their lowest in four years. Traders were also watching the rupee for direction. The local currency plays an important role in determining the landed cost of the dollar-quoted yellow metal.”

Gold prices will hold

Indians in general consider this to be a very auspicious opportunity to purchase gold. Now that gold prices are relatively subdued, the upcoming occasion may support the futures until then,a  recent news story by Rakesh Neelakandan (commodityonline.com) stated. Quoting Manoj Kumar Jain, the president (Commodity & Forex Business) of IndiaNivesh Commodities, felt that the physical demand during Akshaya Tritiya as well as during the run up to it is likely to promote enhanced buying in India.

Difficult to foretell the movement

It’s an asset and prices do fluctuate, states Jayant Manglik, the President (Retail Distribution) of Religare Broking in a column in the Moneycontrol. He adds, “ After a long 12 year bull run, it is showing early signs of flagging but who’s to tell what might happen. There are many factors which affect the price of gold and not all are earth-bound. Having gold in your portfolio is a must and the right mix would have between 10 to 15% of your investible surplus.

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