Gold Prices Drop on Akshaya Tritiya in India

The gold prices in India have dropped on the auspicious occasion of Akshaya Tritiya bringing in much relief for the buyers. The gold prices in India were trading at Rs 55,750 for 10 grams of 22 karats and Rs 60,820 for 10 grams of 24 karats.

The gold rates declined by Rs 300 for 10 grams of 22 karats and Rs 330 for 10 grams of 24 karats, respectively on Saturday.

The gold prices have surged sharply over the last six months in line with the volatility witnessed in the bullion markets. The gold rates were seen at Rs 47,010 for 10 grams of 22 karats and Rs 51,290 for 10 grams of 24 karats on Dhanteras on October 22, 2022.

With the prices trading at an all-time high, many purchasers are opting to postpone their purchases till they see a plunge in the prices.

All India Gem and Jewellery Domestic Council (GJC) Chairman - Saiyam Mehra said that the jewellers are expecting a 20 per cent drop in sales in terms of volumes. He said, "we expect a 20 per cent dip in volume from last year".

On the other hand, the World Gold Council Regional CEO of India - Somasundaram PR said that gold purchases are an inseparable part of Akshaya Tritiya celebrations for millions of Indians.

He added "Though a major gold-buying festival, this year Akshaya Tritiya faces lifetime high prices of gold and a lukewarm response from consumers over the last few weeks. We could see gold accumulation and small ticket purchases through digital gold buying platforms see faster growth, reinforcing the urgent need for a regulatory framework for these."

"Recent tax changes have put gold funds at a tax disadvantage which could offer an unintended advantage to digital gold buying. However, given the strong cultural connect, any short-term softening of price could mean an Akshaya Tritiya surprise for jewellery demand".

In India, Akshaya Tritiya will be celebrated on April 22 and April 23. It is common for people to purchase gold on this occasion as the purchase of gold or silver is believed to bring good luck, prosperity and growth. Apart from purchasing gold, the day is also chosen for doing auspicious activities, planning weddings, housewarming ceremonies and so on.