Investors are advised to accumulate gold this festive season as the fundamental factors surrounding gold might reflect higher returns from a long-term perspective, says an expert
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Buying gold is considered to be auspicious on the occasion of Akshaya Tritiya, which is on April 22, 2023. For this day, jewellers are offering discounts up to Rs 3,000 per 10 grams, apart from as much as 40 per cent off on making charges. Experts said investors are advised to accumulate gold this festive season as the fundamental factors surrounding gold might reflect higher returns from a long-term perspective.
Gold prices on Friday fell by Rs 483 to Rs 60,020 per 10 gram in futures trade as speculators reduced their positions. On the Multi Commodity Exchange, gold contracts for June delivery traded lower by Rs 483 or 0.8 per cent to Rs 60,020 per 10 grams in a business turnover of 16,675 lots.
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Analysts attributed the fall in gold prices to the trimming of positions by participants. Globally, gold was trading 1.19 per cent lower at $1,995.10 per ounce in New York.
Prathamesh Mallya, assistance vice-president (research for non-agri commodities and currencies) of Angel One, said “Gold has been a portfolio diversifier in the long term time frame as the returns in gold balances the overall risk-reward for any investor. Gold returns in 2023 till April 17, 2023, stood at 7.5 per cent on the MCX and 8 per cent for spot gold in international markets.”
He said that however, the return in 2022 was not in favour of investors in dollar terms (-0.2 per cent). Despite the global uncertainty, global equities fared better and in the year 2022 neither experienced recession, defaults or bankruptcies or large-scale layoffs.
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PP Jewellers is giving a 40 per cent discount on making charges on all gold jewellery, while RK Jewellers in Delhi is offering 24K gold at just Rs 59,900 as against the actual market rate of Rs 63,000 on April 22 and 23. Apart from this, jewellers are also showcasing unique diamond bridal jewellery and many other unique collections of this Akshaya Tritiya.
On the MCX, the dollar-rupee equation (rupee depreciation of around 11 per cent) saved the investors, as gold futures were up by around 15 per cent in 2022.
The Akshay Tritiya Gold Special Report by Angel One also said, “We expect gold prices (CMP: 60,500 per 10 gm) to move higher towards Rs 68,000 per 10 gms till next Akshay Tritiya and investors are advised to accumulate on dips towards Rs 57,000-58,000 per cent 10 gms as an opportunity to accumulate the metal.”
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The report said gold continues to make new lifetime highs. Gold prices have been in consolidation for the past two years, followed by a ‘Higher Top- Higher Bottom’ formation.
