Akshaya Tritiya 2025: Is falling gold price an opportunity to buy more?
Gold prices have been falling this week, and as Akshaya Tritiya approaches, many people are wondering whether now is the right time to buy gold. On Wednesday, spot gold was down by 0.4% at USD 3,302.58 an ounce as of 4:30 am GMT, while US gold futures dropped by 0.7% to USD 3,310.70.The fall in gold prices came as the US dollar strengthened and tensions in global trade talks started to ease. A stronger dollar makes gold more expensive for buyers using other currencies, which can push demand down.In India, Akshaya Tritiya is considered a good day to buy gold. It is a time when people usually invest in gold as it is believed to bring good luck and prosperity. But with gold prices now close to all-time highs, near Rs 96,000 per 10 grams, many buyers are thinking twice before making big purchases this year."Over the last 20 years, gold has delivered approx.15% CAGR, which is quite robust, especially in comparison with many fixed-income instruments and even some equity segments during market volatility," said Dr Renisha Chainani, Head of Research at Augmont.
Akshaya Tritiya Gold Returns in past 20 years. (Source: Augmont)
She added that gold has also acted as a hedge against inflation, currency depreciation, and geopolitical uncertainties.WHY ARE GOLD PRICES FALLING?Several reasons have helped gold prices rise in recent years.The ongoing conflicts like the Russia-Ukraine war, the unrest in the Middle East, and trade tensions between the US and China have increased demand for safe-haven assets like gold.Inflation concerns around the world have also driven investors to buy gold, which is often seen as a safe bet during times of rising prices. Many central banks, including those in India and China, have been increasing their gold holdings.On top of that, as the rupee has weakened against the US dollar, gold has become more expensive in the local market.Dr Renisha Chainani believes this festive season can still be a good time to invest in gold.She says that buying gold on Akshaya Tritiya holds both cultural and financial value. According to her, gold can help balance a person's investment portfolio, especially when the stock market is going through a tough time.Chainani added that gold is likely to stay strong in the near future as global uncertainties remain, and interest rate cuts are expected in the US. Demand for digital gold and investment-grade gold is also increasing, as more people are turning to easy and transparent ways to buy gold.However, experts also suggest caution due to the current high prices. With gold trading near record levels, it may not be the best time to make large or rushed purchases. If trade tensions cool down, or if interest rates rise faster than expected, gold prices could fall. Also, if investors start moving their money back into stocks or other high-risk assets, the demand for gold might go down.To handle this situation wisely, experts advise a smart buying plan.Rather than making a large one-time purchase, buyers could consider smaller, planned investments through methods like gold SIPs (Systematic Investment Plans) or by purchasing digital gold. Starting with a small investment on Akshaya Tritiya can be a good entry point.Options like gold mutual funds or exchange-traded funds (ETFs) are becoming more popular for this reason.Those who still want to buy physical gold can look at small coins or light jewellery, which carry lower making charges and are easier to sell later. It's also important to treat gold as a long-term investment and stay invested for at least three to five years to see good returns.Aksha Kamboj, Vice President of the Indian Bullion and Jewellers Association (IBJA), shared her view on the current market situation.She said, 'In the current scenario of geopolitical tensions and currency fluctuations, gold continues to emerge as a reliable asset. While there might be a possibility of short-term price correction, the yellow metal will continue to remain a safe-haven asset.'advertisement(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
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