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Increased buying by consumers on Akshaya Tritiya, which is considered an auspicious day for buying gold, jewellery and other valuables, caps the decline in gold prices.
Akshaya Tritiya is considered an auspicious day to buy gold, be it ornament, bars, coins, etc.
Gold prices declined by Rs 900 to Rs 98,550 per 10 grams in the national capital on Wednesday amid a weak trend in international markets, according to the All India Sarafa Association. The precious metal of 99.9 per cent purity had closed at Rs 99,450 per 10 grams on Tuesday.
Gold of 99.5 per cent purity declined Rs 900 to Rs 98,100 per 10 grams from the previous close of Rs 99,000 per 10 grams.
However, increased buying by consumers on Akshaya Tritiya, which is considered an auspicious day for buying gold, jewellery and other valuables, capped the decline in gold prices.
Jewellers expect around 35 per cent increase in sales in value terms this year, mainly due to high prices, on the Akshaya Tritiya festival compared to last year. Gold prices ruled at Rs 72,300 per 10 grams on Akshaya Tritiya in 2024 which fell on May 10. In volume terms gold sales are expected to remain flat at 20 tonnes, say jewellers.
Silver prices slumped Rs 4,000 to Rs 98,000 per kg against the previous close of Rs 1,02,000 per kg on Tuesday.
In the overseas market, spot gold dipped $43.35 or 1.31 per cent to $3,273.90 per ounce. Spot silver was quoted 1.83 per cent lower at $32.33 per ounce.
“Gold extended its decline after US President Donald Trump signed an executive order aimed at softening the impact of his auto tariffs and cited progress in trade negotiations with several countries,” Kaynat Chainwala, AVP-Commodity Research, Kotak Securities, said.
Additionally, US Commerce Secretary Howard Lutnick suggested that the Trump administration had reached its first trade agreement, though he declined to reveal details, saying the deal was awaiting approval from the other country involved.
Meanwhile, the most-traded June contract for gold futures plunged Rs 1,639 or 1.71 per cent to trade at Rs 93,953 per 10 grams on the Multi Commodity Exchange.
“Traders will closely watch key US macroeconomic releases later this week, including the first estimate of Q1 GDP, Personal Consumption Expenditures (PCE) inflation data, and April jobs figures,” Abans Financial Services’ Chief Executive Officer Chintan Mehta said.
These indicators could offer fresh insights into the Federal Reserve’s next moves and the broader economic outlook, Mehta added.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)
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