Akshaya Tritiya 2025: Gold Prices on the Rise – Expert Predictions on Its Impact on Sales
This year, Akshaya Tritiya brings with it a golden opportunity – or challenge – in the form of sky-high gold prices! The precious metal recently breached the Rs 1 lakh mark, causing some buyers to pause. But is the spirit of the auspicious day doomed by these monstrous prices?
Satish Chandra Aluri from Lemonn Markets Desk shares his insights with Zee News. He suggests that while retail demand for gold jewelry might take a hit due to affordability concerns, this decline could be offset by growing investment demand, particularly in gold coins and digital gold.
Gold prices are influenced by a myriad of global factors that go beyond just the cultural significance of Akshaya Tritiya. Factors such as economic conditions, currency strength, geopolitical tensions, central bank activity, investment demand, and supply constraints all play a role in the gold market.
Economic uncertainty and lower real interest rates make gold appealing as a safe-haven asset. A weaker U.S. dollar and geopolitical tensions boost gold demand, while rising production costs and stagnant mine output drive prices higher. Central bank activity, ETF inflows, and retail demand, especially during cultural events like Akshaya Tritiya, further influence gold prices.
Speaking about the current market situation, Aluri notes that gold has already surged to record highs this year, fueled by trade shocks from former President Trump, global growth disruptions, and heightened geopolitical tensions. Although prices have eased slightly due to temporary trade tension cool down, the medium-term outlook remains strong. Global growth is expected to slow, and demand from central banks and institutional investors is likely to rise as they seek diversification away from the U.S. dollar.
In sum, despite the challenges posed by rising gold prices, Akshaya Tritiya's cultural significance and gold's enduring appeal as a symbol of prosperity may continue to drive demand to some extent. While the exact impact remains to be seen, it is essential to keep an eye on the global factors shaping the gold market. Happy Akshaya Tritiya!
- In contrast to potential affordability issues in retail demand for jewellery, the growing investment demand for gold coins and digital gold, particularly during cultural events like Tritiya in 2023, may help offset any decline.
- Although the current global economic conditions and lower real interest rates make gold appealing as a safe-haven asset, the demand for sports jewellery might not be significantly affected because it caters to a distinct market segment.
- Despite the surge in gold prices, sports events and their associated merchandise can benefit from increased demand due to their universal appeal and association with success, prosperity, and triumph, much like Akshaya Tritiya.
