Gold Price Drop – Gold prices in India have experienced a notable rise today, reversing a four-day downward trend. This increase comes just before Akshaya Tritiya, a major Hindu festival, which is regarded as an auspicious time for purchasing gold and silver. The surge in demand around this time has contributed to the rise in prices, creating a sense of pressure for buyers who were hoping for more relief after the recent price drop.
Akshaya Tritiya: The Festival That Drives Gold Demand
Akshaya Tritiya, celebrated on April 29th this year, is traditionally a day when millions of Indians buy gold, believing it brings prosperity and good luck. This festival has a significant cultural and economic impact on the gold market in India. As people flock to jewelers in anticipation of the festival, demand for gold increases, leading to price hikes. Today’s rise in gold prices reflects this trend, and the surge is expected to continue as the festival approaches.
Recent Price Surge: 24K and 22K Gold Costs
As of April 29th, gold prices in India have reached new heights. The cost of 100 grams of 24-carat gold has increased to Rs 9,79,700, while 22-carat gold is priced at Rs 8,98,000 per 100 grams. This spike comes at a time when many buyers were enjoying relief from the recent price drop, but the latest surge has reignited concerns over affordability.
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Global Gold Price Trends: Spot Prices Fall
While gold prices in India are on the rise, the global market paints a different picture. Spot gold prices internationally have fallen by 1%, influenced by a slight rebound in the US Dollar Index. Additionally, easing trade tensions between the US and China have contributed to a decrease in global demand for gold, which has had a downward effect on international prices. Despite this, the rise in gold prices in India is largely driven by local demand during the festival season.
Will Gold Prices Continue to Rise?
Many experts believe that gold prices could continue their upward trajectory in the short term. A report from Nirmal Bang suggests that gold prices are expected to rise further, advising traders to consider buying at Rs 95,300, with a stop-loss at Rs 94,900 and a target price range of Rs 95,800 to Rs 96,200. On the other hand, a report from ICICI Securities warns that gold might face resistance around the USD 3350 mark, which could lead to a price correction towards USD 3275 per ounce if global trade negotiations continue to improve.
Impact of Global Events on Gold Prices
Global factors, such as the easing of US-China trade tensions, have had a noticeable effect on gold prices. As trade relations improve, demand for gold tends to decrease, contributing to a decline in international prices. As of the latest data, spot gold is priced at $3,314.99 an ounce, while US gold futures are trading at $3,325.10 an ounce. However, these global trends do not always reflect the pricing dynamics in India, where local demand during festive periods can have a significant influence on prices.
Silver Prices in India
While gold prices are rising, silver prices in India have remained relatively stable. On April 29th, 1 kg of silver is priced at Rs 1,00,500, and 100 grams of silver costs Rs 10,050. Silver, which is often considered a more affordable alternative to gold, has experienced a less dramatic price fluctuation. Nonetheless, silver prices are still affected by global market trends and the seasonal demand, especially during festivals like Akshaya Tritiya.
MCX Gold and Silver Futures
Gold futures prices on the Multi Commodity Exchange (MCX) were trading lower as of the morning of April 29th. The June 5th expiry contracts for gold were priced at Rs 95,340, showing a decline of 0.71%. Similarly, silver futures set to mature on May 5th, 2025, were trading at Rs 96,108, down by 0.37%. These declines reflect broader market trends and expectations of price corrections in the near future.
Will Prices Drop After Akshaya Tritiya?
The key question on the minds of many buyers is whether gold prices will drop after Akshaya Tritiya. While it’s difficult to predict with certainty, experts believe that prices may continue to stay high in the short term. The combination of festive demand and global factors contributing to price fluctuations makes the market unpredictable. As Akshaya Tritiya approaches, buyers are advised to stay informed and consider market trends before making any purchases.
Navigating the Gold Market in India
Gold prices in India have risen sharply ahead of Akshaya Tritiya, which is driving demand for the precious metal. While prices are expected to remain high in the near future, global factors like trade negotiations and the US Dollar Index could influence the market. Buyers should stay informed about price movements and consider alternatives like silver for more affordable options during this festive season. Whether prices will drop after Akshaya Tritiya remains uncertain, but the current trend indicates that gold may continue to be a costly investment in the short term.