Gold demand may be subdued this 'Akshaya Tritiya' amid Covid crisis

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SME Times News Bureau | 13 May, 2021
Demand for gold on the occasion of 'Akshaya Tritiya' on Friday is expected to be somewhat impacted by the raging second wave of the Covid-19 pandemic.

'Akshaya Tritiya' is considered to be an auspicious occasion to purchase gold and gold commodities, including jewellery.

However, the Covid crisis and the ensuing lockdowns across many states would hamper the physical demand for gold, experts said.

Nish Bhatt, CEO and Founder, Millwood Kane International, said, "The love for the yellow metal among Indians is no secret, and buying gold on Akshaya Tritiya is considered auspicious. But this time around, gold buying may get affected due to the outbreak of the second wave of Covid-19 in different cities across India."

He said that it is advisable for the investors and gold buyers not to venture out during these times and opt for digital or paper gold instead of physical gold.

Gold prices are on an upward move, helped by the weak jobs data, softness in dollar, and a broader view that the interest rates will be low in the US for a long time, Bhatt said, adding that gold prices are trading near a three-month high in international markets, while domestically gold prices are hovering near the Rs 48,000-level per 10 gm.

"The vaccination drive, control over the number of cases, and lockdowns internationally coupled with the movement of the US dollar will drive prices of gold moving forward," Bhatt said.

Ketan Kothari, Director of Augmont, noted that due to the statewide lockdowns, most of the jewelry shops are closed, and as a result the physical demand for gold remains muted.

"During these uncertain times, the sentiments of the buyers are weak before Akshaya Tritiya. Survival and saving cash for uncertainty is the preference for customers now," he said.