Global prices increasing by 25% since January

 

Indians will continue to purchase gold this Akshaya Tritiya 

As gold is moving high with big ticket and Akshay Tritiya is at our doorstep! In the scenario Sachin Jain, Regional CEO, India, World Gold Council expressed on account of Akshay Tritiya, “Gold purchases have traditionally been an integral part of Akshaya Tritiya celebrations for millions of Indians, symbolising prosperity and good fortune. 

We are currently witnessing, sky rocketing gold prices - gold’s era. This year marks a significant period for gold, with global prices increasing by 25% since January and reaching a record high of USD 3500 per ounce.  

In India, gold prices have hit historic highs of Rs 1 lakh per 10 grams, reinforcing the belief in the yellow metal. Gold’s status as a safe haven is at an all-time high, and it is anticipated that Indians will continue to purchase gold this Akshaya Tritiya regardless of price fluctuations.  

Industry feedback suggests a strong buyer interest in various forms of gold, including higher carat gold jewellery, gold ETFs, digital gold, and coins and bars, further solidifying gold’s role in Indian households. 

Despite external factors such as tariff-related uncertainties, gold jewellery retailers are well-stocked and optimistic about favourable buying behaviour. With seasonal and wedding-related demand also influential, robust gold purchasing is expected this festive season.”  

In the row, Dr Renisha Chainani, Head - Research at Augmont analyses that, “Gold has crossed the psychological level of $3500 (~Rs 99000) today, as the dollar fell to a three-year low below 98. President Trump increased pressure on the Federal Reserve, calling for a dramatic rate reduction and even considering replacing Fed Chair Powell.  

Trump criticised Fed Chair Jerome Powell again on Monday, warning that the US economy will slow unless interest rates are cut promptly. The comments on Powell reinforced concerns about the Fed's independence in establishing monetary policy, as well as the outlook for US assets.  

Furthermore, amidst the trade war, China accused the US of abusing tariffs and warned governments not to seek an agreement with the US that compromised Beijing's interests. Together, these considerations have led to strong safe-haven demand for gold, which is now up 30% this year.”  

In the row, Colin Shah, MD, Kama Jewelry said, “The new all-time-high attained by the yellow metal is primarily influenced by the rising tensions between President Trump and US Fed Chair Jerome Powell regarding the Fed rate cut. Additionally, weakness in the USD following the tensions between Trump and US Fed Chair and uncertainties around the US-China trade war are another crucial factor that has pushed gold price to a record high.  

While the gold price is on an upward trajectory, the fall in USD will make gold affordable in other currencies, keeping the demand-price dynamics balanced. As the global economic development unfurls, we project the gold price to breach the USD 3600/Oz in the international market during FY2026.  

Domestically, it is observed that gold price witnesses a slight rise around festive season like Akshaya Tritiya, in reflection to the spike in demand. The sentimental and cultural value attached towards investing in yellow metal on auspicious occasions like this will keep the demand upbeat, irrespective of the price trend."