Gold Demand in India Remains Unshaken Despite Record Prices

As Akshaya Tritiya approaches, gold demand in India shows no signs of slowing down, even after prices soared beyond the historic high of Rs 1 lakh per 10 grams. This auspicious day, symbolizing prosperity, sees a surge in purchases of gold and silver, cherished as emblems of wealth and good fortune.

Why Gold Continues to Shine Among Buyers

The allure of gold remains strong, attributed to its remarkable returns over the past two years. Lightweight designs and studded jewelry are increasingly popular, drawing more consumers to the market.

Rajesh Rokde, chairman of the Gem and Jewellery Council of India (GJC), highlights gold's consistent annual returns of 20–25%, bolstering buyer confidence. With last year's prices at Rs 72,000 per 10 gm and Rs 58,000 in 2023, the steady growth is undeniable.

Anticipating a Pullback in Gold Prices

Commodity analysts suggest a potential cooling in gold prices in the coming months, advising a more cautious approach to investments. Ajay Kedia of Kedia Advisory forecasts a moderation in returns to around 6–7%, aligning with inflation rates.

Kaynat Chainwala from Kotak Securities points to global market dynamics as a key factor in recent price dips, with trade negotiations and economic data expected to influence future trends.

Optimism Amidst Caution

Despite the cautious outlook, some analysts like Manav Modi of Motilal Oswal Financial Services advocate for a 'buy on dips' strategy, setting long-term targets at Rs 1,06,000.