With Akshaya Tritiya around the corner, experts pitch for centuries-old popular gold
Vibha Sharma
Tribune News Service
New Delhi, April 23
With Akshaya Tritiya, a festival associated with wealth, prosperity and happiness, around the corner and most investment avenues either falling flat or failing due to coronavirus-economic slowdown, experts are pitching for centuries-old popular gold, calling it a “safe and profitable” investment.
Celebrated on the third day of Vaishakh month, the summer festival is also known as “Akha Teej”.
This year it falls on Sunday, April 26.
Many Indians buy the yellow metal as it is considered an auspicious time to start new work and make investments.
While direct purchase from jewellery shops will not be possible due to the lockdown, online products are expected to see traction and the main reason is that “gold acts as a hedge against inflation and historically its value has appreciated during uncertain times, war, pandemic, or an economic slowdown”, according to Nish Bhatt of the Millwood Kane International.
“Since gold is an international commodity priced in USD, any depreciation in INR will lead to a further rise in its price. The value of the yellow metal has risen over 40% in the last year alone. During economic uncertainty, it is generally a safe and profitable investment; therefore, the outlook for gold remains positive in the near term,” says Bhatt.
Meanwhile, according to Rahul Gupta from the Emkay Global Financial Services due to the lockdown, Akshaya Tritiya may see a “subdued demand in gold”.
“However, the economic uncertainty and recessionary impact of coronavirus in global economy will push the overall gold prices higher,” he said.
“Technically, intermediate corrections will be seen on gold but the trend will remain positive until prices trade above 44,000 in the domestic markets. Expect prices to test 47300/48550 levels until then,” Gupta adds.
