INVC NEWS Mumbai – The allure of gold has captivated investors for centuries, and over the past year, this precious metal has proven itself as a reliable asset. With gold prices soaring more than 30% since May 10, 2024, its shine has become even more irresistible, especially as the auspicious day of Akshay Tritiya approaches. Let’s take a deeper dive into the remarkable rise in gold’s value, explore the factors driving this surge, and understand how buyers’ behavior is evolving in response to these unprecedented prices.
Gold Prices Reach Record Highs: A Reflection of Global Economic Instability
Gold prices recently reached an all-time high, with the price of 10 grams crossing ₹1,00,000 on April 22, 2025. This surge can be attributed to global economic uncertainty and persistent inflationary pressures. The economic landscape, marred by geopolitical tensions and fluctuating markets, has spurred a renewed interest in gold as a safe-haven asset. Historically, gold has been a trusted store of value during times of instability, and investors are turning to this precious metal as a hedge against uncertainty.
As of April 24, 2025, the price of 22-carat gold at major retail stores like Malabar Gold, Joyalukkas, Kalyan Jewellers, and Tanishq stood at ₹7,945 per gram, with Tanishq slightly edging ahead at ₹7,990 per gram. This increase, compared to the previous Akshay Tritiya in 2024, represents a staggering 30% rise in just one year. Even more striking is the price difference when compared to 2019, when gold was priced at just ₹31,729 per 10 grams, marking an increase of approximately 200% over the past five years.
The Impact of Rising Prices on Gold Demand: A Shift in Consumer Behavior
Despite the record-high gold prices, the demand for gold remains strong, especially in the lead-up to the Akshay Tritiya festival. However, the surge in prices has led to a notable shift in consumer purchasing patterns. According to a report from investment platform Ventura, southern India continues to dominate the gold consumption landscape, accounting for around 40% of the total demand on Akshay Tritiya. Following Southern India, Western India contributes 25%, Eastern India makes up 20%, and Northern India accounts for just 10%.
While these numbers indicate that gold remains a significant part of Indian culture, the high prices have made some consumers rethink their gold purchases. Many are opting for lighter pieces of jewelry instead of the traditional heavy ones, which were once commonplace during weddings and festivals. As a result, lighter gold items such as 1-1.5 sovereign jewelry have seen an uptick in demand.
Moreover, the preference for 14-carat and 18-carat gold is also rising. These options, which offer durability and affordability, are becoming increasingly popular, especially among buyers who wish to balance investment potential with practicality.
Gold as a Safe Investment: Why Investors Are Turning to Gold in Uncertain Times
While the gold jewelry market may see a decline in volume due to higher prices, gold continues to shine as an attractive investment option. Investors are still drawn to gold for its stability and long-term potential. Despite the higher prices, demand for gold biscuits and coins remains robust. For many investors, the appeal lies in the security that gold offers, especially during periods of global uncertainty and financial instability.
Experts predict that, moving forward, gold will continue to serve as a reliable asset in diversified investment portfolios. With inflation rising and geopolitical tensions simmering, the precious metal provides a hedge against currency devaluation and market volatility.
Akshay Tritiya: A Symbol of Prosperity and a Key Day for Gold Purchases
The Akshay Tritiya festival, observed on April 30, 2025, holds significant cultural and religious importance in India. Traditionally, it is considered an auspicious day for making new investments, especially in gold. Many believe that buying gold on this day will bring endless prosperity and success. For centuries, Akshay Tritiya has been the preferred time for purchasing gold, as it is believed to bring good fortune.
The most favorable muhoort for buying gold this year is from 5:40 AM to 12:18 PM on April 30, which is considered the best time for purchasing gold and performing prayers.
Gold Demand Outlook: How High Prices May Affect the Market
The price surge has led to a forecasted decline in gold sales volume for this year’s Akshay Tritiya, despite strong consumer interest. Ventura’s report suggests that consumers, particularly those from lower and middle-income brackets, may choose to reduce the amount of gold they purchase or opt for lighter pieces of jewelry. This shift in consumer behavior is likely to result in a slight decrease in sales volume, but jewelry retailers remain optimistic about maintaining revenue levels similar to last year, thanks to the high prices.
Consumers are also increasingly opting for alternative methods of purchasing gold, such as monthly installment plans and exchange schemes offered by jewelers. These strategies help buyers manage the high cost while still benefiting from the value of gold.
Moreover, despite the high price tag, symbolic purchases of 1-2 grams of gold are expected to remain popular among those wishing to honor tradition without breaking the bank. This behavior reflects the cultural significance of gold during festivals, with even modest purchases holding substantial sentimental value.
Will Gold Prices Continue to Rise or Will They Fall?
Looking ahead, experts remain divided on the future trajectory of gold prices. According to Ventura, the potential for further price increases exists, particularly if geopolitical tensions escalate or if the global economic environment worsens. Additionally, a cut in interest rates by the Federal Reserve could drive gold prices even higher, potentially reaching $3,600-$3,700 per ounce or ₹1,01,000-₹1,04,000 per 10 grams by April 2026.
However, some analysts warn that gold prices may experience fluctuations in the short term. If there is a delay in the Federal Reserve’s interest rate cuts, or if global economic conditions improve unexpectedly, we could see a temporary decline in gold prices. Predictions suggest that in such scenarios, gold could dip to $2,900-$3,000 per ounce or ₹87,000-₹90,000 per 10 grams.
Gold Remains a Long-Term Investment: Navigating the Future
While short-term fluctuations in gold prices are possible, its long-term appeal remains unshaken. Gold continues to serve as a store of value in uncertain times. As investors look for assets that can weather economic storms, gold’s role as a safe-haven investment has never been more critical. Whether for diversification or as a hedge against inflation, gold is poised to remain a key component of investment strategies for years to come.
