Gold prices surged to touch the psychological mark of Rs 1 lakh per 10 gm at the retail level on Monday and is likely to hurt consumer sentiment ahead of Akshaya Tritiya, a heavy purchase day for gold.
The price of gold without the Goods & Services Tax (GST) was trading at Rs 97,200 per 10 gm. The jewellery trade is hopeful that though the prices are surging northward, there will be good demand for gold as an investment product.
“There was a lot of rush today to buy gold in Zaveri Bazaar as there is a feeling in the market that prices of gold will surge further,” said Avinash Gupta, vice chairman of All India Gem & Jewellery Domestic Council.
Jateen Trivedi, research analyst for commodity and currency, LKP Securities, said “Gold prices extended their record-breaking rally as the fresh week kicked off with strong early buying. Comex gold approached the USD 3,400-mark, trading near USD 3,395, while MCX gold surged to Rs 96,775, registering fresh all-time highs.”
“The rally is being supported by escalating tariff tensions, concerns over the US economic outlook, and the looming US debt crisis. Continued buying from China, global central banks, and institutional investors has added momentum to the bullish sentiment.
Technically, as long as Comex holds above USD 3,250 and MCX above Rs 91,000, the uptrend remains intact. Any dips towards Rs 93,000 in MCX may offer fresh buying opportunities. However, given the elevated levels, speculators are advised to maintain low-risk positions to manage potential volatility.”
Interestingly, rising gold prices have also accelerated consumer interest in studded jewellery. We are witnessing increasing traction in natural diamond jewellery, polki or raw, uncut diamond, and coloured gemstone pieces.
Gold bars and coins are also expected to perform well as consumers continue to look to gold as a safe, long-term asset. The next ten days will be crucial in shaping momentum, but all indicators point to a promising Akshay Tritiya ahead, said Saurabh Gadgil, managing director of listed firm PNG Jewellers.
