Gold Gains 8% From Last Year’s Akshaya Tritiya – These Factors Will Now Impact Prices

Akshaya Tritiya 2022 Date: The price of gold in India managed to break above the 50,000 rupees mark after a long period of decline. The price of ten grams of gold has gone from levels of around 47,000 rupees, as seen during the Akshaya Tritiya 2021, to current levels of around 51,000 rupees. Akshaya Tritiya 2022 falls on May 3, 2022 and sustained demand for gold could keep prices at higher levels.

“Domestic gold prices were up about 8% year-on-year as of April 29, 2022. Gold prices were range-bound for much of the year before the Russian- Ukrainian,” says Dhaval Kapadia, Director – Managed Portfolios, Morningstar India Investment Advisor.

Gold Outlook

Several recent developments could continue to impact the price of gold, at least in the near future. “Gold should find near-term support, supported by geopolitical tensions, the likelihood of a stagflation scenario (low growth and high inflation) and the recovery of local demand.

However, this could be overweighted by aggressive tightening by major global central banks to rein in persistently high inflation, and a de-escalation of geopolitical concerns could lead to lower risk aversion weighing on gold prices. Continued rising interest rates are negative for gold as the cost of holding it increases, plus gold is a non-revenue generating asset,” Kapadia says.

With inflation soaring in most countries, gold could regain its inflation protection tag. “Inflationary pressure is unlikely to subside soon, which could lead to equity assets underperforming and funds being diverted into gold assets. over the past 3 years, should still shine,” says Swapnil Bhaskar, Head of Strategy, Niyo – Neo-Bank for Millennials.

gold investors

In addition to equity mutual funds, PPFs, NPS and other investments, it is worth diversifying into gold and even real estate. Having a good asset allocation plan helps in the long run.

“Gold is a long-term asset and investors shouldn’t worry about it in the short term. It is suggested to stay invested and one can invest in gold ignoring the timing of the market when investing for the long term. 5-10% of your portfolio should be dedicated to gold, as it guarantees average portfolio losses over the long term, during market declines, acting as a hedging tool,” says Priti Rathi Gupta, Founder of LXME – India’s leading financial institution. platform for women.

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