Gold and silver prices have witnessed a significant rise in India as the auspicious festival of Akshaya Tritiya approaches, with both metals seeing notable gains driven by increased buying activity from jewellers and stockists. Gold prices rose by Rs 1,050 to Rs 99,450 per 10 grams in the national capital, while silver prices surged by Rs 3,500 to reach Rs 1,02,000 per kg. Despite the elevated prices, experts predict sustained demand, particularly for lightweight items. The market's bullish trend is further bolstered by the cultural significance of the festival, which traditionally drives gold purchases in India.
Gold and Silver See Significant Price Hikes Ahead of Akshaya Tritiya
As the festival of Akshaya Tritiya draws near, both gold and silver have emerged as prime beneficiaries of a surge in market demand. Traditionally celebrated as a highly auspicious occasion for purchasing gold, Akshaya Tritiya this year falls on April 30. The national capital has seen a significant uptick in prices, with gold climbing by Rs 1,050 to Rs 99,450 per 10 grams, according to the All India Sarafa Association. The surge comes amid fresh buying by jewellers and stockists, spurred by the upcoming festival and the cultural importance attached to gold purchases during this period.
Gold Prices: A Steady Climb Amid High Demand
Gold prices have risen dramatically since the beginning of the year. As of today, the yellow metal has added Rs 20,500 per 10 grams, marking an impressive 26% increase from its value of Rs 78,950 on December 31, 2024. This ongoing appreciation reflects a mix of cultural demand for gold during Akshaya Tritiya and its appeal as a safe-haven asset amid global economic uncertainty.
Despite a minor dip in prices on Monday, where gold of 99.9% purity fell by Rs 1,000 to Rs 98,400 per 10 grams, the overall trend remains bullish. The price fluctuations seem to be a result of market correction, but the long-term outlook remains optimistic. Investors and consumers alike continue to view gold as a reliable store of value.
The increase in gold prices is also attributed to the rising costs of raw materials and inflationary pressures. While some cautious buyers may hold off due to the higher price levels, the enduring appeal of gold, especially during Akshaya Tritiya, ensures that demand remains strong. The market anticipates that even at elevated prices, there will be a robust demand for gold, particularly for lightweight jewellery, which caters to a broader range of buyers.
Silver's Sharp Surge: The White Metal Hits Near-Record Highs
Silver, the often-overlooked counterpart to gold, has also seen a remarkable rise. On Tuesday, silver prices surged by Rs 3,500, trading near an all-time high of Rs 1,02,000 per kg. This is the steepest rise in nearly three weeks, reflecting a broader bullish sentiment across precious metals. Silver prices had touched an all-time high of Rs 1,03,500 per kg on March 19, 2025.
The rise in silver prices comes amid a growing sense of optimism within the precious metals market. While gold typically takes center stage during Akshaya Tritiya, silver is also a popular choice among consumers, especially for gifting purposes. The spike in prices underscores the increasing appeal of silver as an alternative investment, driven by a combination of cultural demand and the metal’s lower entry price compared to gold.
Global Market Trends: A Mixed Picture
On the international front, gold has seen some weakness. Spot gold traded 1% lower at USD 3,311 per ounce, as profit-taking set in. This dip comes amid growing optimism surrounding potential trade agreements between the U.S. and countries like India and Japan, which has tempered some of the global demand for safe-haven assets. The ongoing trade tensions between the U.S. and China, as well as President Trump's tariffs, have cast a shadow on global markets, but the anticipated easing of these tensions has reduced the urgency for some investors to seek shelter in gold.
Meanwhile, silver has been relatively resilient, trading up by 0.36% at USD 33.28 per ounce in Asian market hours. The global demand for silver is often more closely tied to industrial applications, such as electronics and solar energy, but the cultural factors in India during Akshaya Tritiya are likely to provide a temporary boost to its market.
Anticipating Continued Strong Demand Despite High Prices
Despite the higher price levels for both gold and silver, experts predict that demand will remain strong during the festival. Jateen Trivedi, VP of Research at LKP Securities, highlighted that the softness in global gold prices is largely attributed to profit-booking, but this will likely be a temporary trend. The ongoing demand for gold during Akshaya Tritiya, coupled with its traditional status as a cultural investment, ensures that prices are expected to hold steady.
Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, also pointed out that investor focus is shifting to macroeconomic data, including key reports like the U.S. JOLTS job openings and the Conference Board Consumer Confidence Index. These reports will shed light on the broader economic implications of U.S. President Trump's trade conflict, which could further influence commodity markets in the coming weeks.
Conclusion: The Golden Opportunity Amid Elevated Prices
As Akshaya Tritiya approaches, the sharp increase in gold and silver prices has created a dynamic market environment. The rising demand, driven by cultural and economic factors, is likely to maintain momentum throughout the festival period. While the elevated price points may deter some buyers, the enduring significance of gold and silver in India’s cultural and economic landscape guarantees their continued appeal. As such, the precious metals market remains an attractive space for both consumers and investors, with expectations for further price fluctuations in the near term.
In conclusion, gold and silver’s price movements reflect a broader trend of cultural demand meeting financial investment. Whether driven by the festival season or global economic developments, these precious metals continue to be integral to India’s financial ecosystem.
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