Gold rush:On Akshaya Tritiya, 30% sale jump expected today

Sanjeev Sharma

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Tribune News Service

New Delhi, April 20

Gold is shining brighter on Akshaya Tritiya this year as traders are expecting an increase of 25-30 per cent in jewellery trade tomorrow.

The Confederation of All India Traders (CAIT) voiced the market sentiment linked with Akshaya Tritiya, considered an auspicious day to buy gold.

CAIT Secretary General Praveen Khandelwal said: “Last year, the day did not see good business because of the General Election. Gold prices, too, touched Rs 30,000 per 10 gms, restricting customers to buy it. But today, gold prices strengthened by Rs 125 to trade at Rs 27,200 per 10 grams at the bullion market  “Gold is, therefore, set to start shining more brightly this Akshaya Tritiya,” he said.

He said notwithstanding unseasonal rains affecting the rural economy this season, gold demand was expected to be strong in 2015 on the back of a resilient economy surging ahead with higher growth.

In the Budget, the government had announced a gold  monetisation scheme to utilise the dormant gold reserves. To curb gold imports and monetise large idle stocks of the precious metal, Finance Minister Arun Jaitley had announced three schemes, including redeemable gold bonds that will carry a fixed rate of interest. Gold imports have risen in 2014-15 by 19.2 per cent — $28.8 billion to $34.3 billion.

The WGC said the factors that would create a positive environment for gold this year include the purposeful and pro-gold Budget announcements to bring the precious metal into the mainstream economy coupled with a higher number of auspicious days and modernising jewellery trade.

“We believe the immediate outlook remains strong and the long-term fundamentals of the gold market remain intact,” it said.