Gold jewellery sales during this Akshaya Tritiya on April 22 are expected to remain muted with gold prices hitting a new high at ₹63,000 per 10 gram at the retail level and is slated to rise further with global economic uncertainty.
Akshay Tritiya is considered an auspicious occasion to buy gold as it is believed to bring prosperity and good luck.
In last two months, gold prices in the wholesale market have jumped 18 per cent to touch a high of ₹60,880 per 10 grams on Thursday against ₹56,478 logged on February 15, according to the Indian Bullion and Jewellers Association of India.
Gold prices have increased 20 per cent from ₹50,808 per 10 grams since last Akshaya Tritiya on May 3, 2022.
With the steady rise in price amid weak demand, gold is being offered at a discount of $3 an ounce in the wholesale market largely due to overall supply of bullion.
Somasundaram PR, CEO (India), World Gold Council said with the high gold prices jewellery sales during this Akshya Tritiya will be muted, though there will be some token purchases especially through the digital medium which still accounts for a small portion of the entire gold industry.
Gold prices in the wholesale market are still at a discount reflecting the somber mood in the industry, he added.
Kumar Jain, National Spokesperson, Indian Bullion and Jewellers Association said recycling old gold jewellery and exchange of gold coins and bars for jewellery is expected to pick up this Akshaya Tritiya as prices have hit a high and are expected to rise further with lot of global economic uncertainty.
Besides Akshaya Tritiya, jewellery sales till July will be driven by a slew of weddings where gold buying is a must irrespective of price levels, he said.
Ramesh Kalyanaraman, Executive Director, Kalyan Jewellers said though the consistent increase in gold prices has seen a temporary dip in discretionary gold purchases, the advance booking forAkshaya Tritiya has been encouraging.
Apart from yellow gold jewellery, there has been an uptick in consumer preferences towards alternative metals such as platinum, silver, rose gold and white gold besides luxury products such as diamond jewellery pieces, he added
Aditya Pethe, Director, WHP Jewellers said most consumers tend to buy gold irrespective of price levels on fear that it will rise further and become unaffordable and steady rally boost consumers confidence.
Purchase of lightweight gold necklaces and diamond jewellery is expected to be high while there will also be token purchase in form of bullion and wedding jewellery, he added.