Akshaya Tritiya 2024: Should you buy gold on the auspicious day?

Akshaya Tritiya 2024: Akshaya Tritiya marks the beginning of a new cycle in which buying new things, including jewellery or other valuables, is said to bring long-lasting luck. Buying gold on this occasion is considered auspicious since it is associated with good fortune, wealth, and achievement. 

Thus, on Akshaya Tritiya, largely a surge in gold purchases is seen. However, it's important to approach any investment with careful consideration and not solely based on auspicious timing.

Akshaya Tritiya 2024: Should one buy gold this Akshay Tritiya?

Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities recommends accumulating gold in smaller denominations rather than making large purchases on Akshay Tritiya. 

"While gold is considered auspicious for buying during Akshaya Tritiya, current prices around Rs 71,000 may be slightly expensive. Thus, it is advisable to accumulate gold in smaller denominations rather than making large purchases," said Trivedi. 

Further, Trivedi believes timing purchases strategically and diversifying investments can help mitigate risks and maximise returns in the long term.

Echoing a similar view, Hareesh V, Head of Commodities, Geojit Financial Services, recommended staying cautious and buying gold in minimal quantities this Akshaya Tritiya.

However, he said investors can make use of every price correction to add gold to their portfolio for long-term benefits.

CA Krishnan R, Director & CEO, Unimoni Financial Services Ltd advised buying gold bullion coins instead of ornaments considering the additional cost of making ornaments.

However, as CA Krishnan R warned even though gold is considered a good investment against inflation and provides immediate liquidity, it does not provide consistent returns like stock or bonds and also has costs associated with storage. 

Akshaya Tritiya 2024: How are gold futures expected to perform?

As per Umesh Mohanan, ED & CEO, Indel Money, "The elevated gold prices in the domestic market may marginally impact gold demand during the festive season. There may be a decline in the volume but in value terms, the business may not see a significant downfall."

Further, LKP Securities' Trivedi believes during the Akshay Tritiya gold prices often experience fluctuations due to increased demand in the physical market. 

Akshaya Tritiya 2024: Gold outlook 

As per Geojit Financial Services'  Hareesh V, domestic gold prices can have a technical correction in the immediate run. However, in the long run, firm overseas prices, increased physical demand, and a weak Indian rupee would assist prices to retain their bullish outlook. 

Positive triggers:

>> Weak US dollar.

>> Hopes of interest rate cuts.

>> Escalating geopolitical tensions.

>>Worries over the global economic outlook.

>> High central bank purchases.

Risks:

>>Firm global equities.

>>Any changes in the Fed’s policy decisions.

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