Akshaya Tritiya 2025: Gold Gave Nearly 31% Return Since Last Year — Should You Buy More?
Akshaya Tritiya may add more glitter to gold, as the precious metal has been trading at record highs in recent period amid global headwinds.
The festival of Akshaya Tritiya, also known as Akha Teej or Akti, is will be observed on Wednesday, April 30. Several Indians believe that gold bought on this occasion is auspicious and will rapidly appreciate in value. And the bullion's recent performance suggests likewise.
Gold prices have surged nearly 31% since last year's Akshaya Tritiya that fell on May 10, 2024.
On the MCX, the lowest price gold touched was on July 26 at Rs 67,900 per 10 grams. The highest level of Rs 98,228 was hit on April 22.
In the retail market, the bullion crossed Rs 1-lakh mark this month.
Comparing gold returns over the last 15 years for Akshaya Tritiya, the yellow metal has delivered a 10% compounded annual growth rate, according to brokerage Motilal Oswal Financial Services.
Gold Outlook
Gold prices may continue to trade firm in the medium term due to central banks' buying, expected interest rate cuts, a weaker dollar, inflation and economic uncertainty (arising from tariff uncertainty), ETF inflows and geopolitical factors, according to a note from Tata Mutual Fund.
Analysts said while short-term corrections are possible as gold prices have rallied more than 25% in the past six weeks, historically, decline has taken three to five months.
Major multinational investment banks like Goldman Sachs have raised their year-end forecast for bullion to $3,700, with a potential peak of $4,500. UBS projects gold at $3,500, while Bank of America also increased its 2025 forecast to up to $3,500.
Motilal Oswal Financial Services continues to maintain a buy-on-dips on gold, suggesting investors can start accumulating near the support zone of Rs 90,000-91,000 for the long-term target of Rs 1,06,000.
Gold Investment Methods
Investments in gold can be in the form of exchange-traded funds, exchange-traded derivatives, digital gold, gold mutual funds and physical bars and coins.
Gold ETFs have seen heightened interest from retail investors, especially since the government discontinued the popular sovereign gold bonds after February 2024. There are over 20 bullion ETFs in India, with the largest being Nippon India ETF Gold BeES.
Several fintech companies like PhonePe and Paytm offer digital gold on their mobile apps.
Gold mutual funds allow investors to start a systematic investment plan or SIP, making periodic investment easier. It also helps to track returns vis-a-vis equity or debt funds.
