Akshaya Tritiya 2024: Buying Gold? Check Brokerage Insights On Gold Price, Investment Strategy, And Return Trends

Akshaya Tritiya holds a sacred position in Indian culture, symbolizing prosperity, good fortune, and success. It is widely believed that any ventures or investments initiated on this day bring favourable outcomes. Consequently, activities such as purchasing gold, launching new businesses, or even tying the knot have become popular traditions associated with Akshaya Tritiya. The term "Akshaya" translates to "eternal" or "imperishable," underscoring the everlasting nature of the virtues acquired on this auspicious day. With its blend of tradition, spirituality, and optimism, Akshaya Tritiya stands as a cherished occasion embodying hope and abundance in Indian society, However taking

Gold's Glittering Journey In 2023

In the year 2023, precious metals, particularly gold, witnessed a fruitful journey with gains of approximately 15 per cent in domestic markets. This growth was fueled by a mix of geopolitical tensions, central bank manoeuvres, fluctuations in the dollar index, and shifts in US yields. Continuing this trend, MCX gold surged by 12.50 per cent, slightly outperforming spot Comex gold, which stood at 12.20 per cent for the calendar year. Despite facing unexpected global events stemming from the pandemic and geopolitical conflicts like the Russia-Ukraine crisis and Israel-Hamas tensions, alongside debt crises, the market has been resilient. A notable trend that emerged was the significant increase in gold purchases by central banks worldwide, reaching 1,037 tonnes in 2023, just shy of the record set in 2022 at 1,082 tonnes.

Looking ahead, the future of gold remains dynamic, influenced by factors such as central bank policies, geopolitical scenarios, and economic indicators. Despite market risks, historical trends indicate that gold tends to flourish during turbulent periods, highlighting its potential as an investment option during times of heightened uncertainty.

Gold Price Performance In Q1 Of FY24

The World Gold Council's Q1 2024 report revealed a 3 per cent increase in global gold demand, totalling 1,238 tonnes, marking the strongest first quarter since 2016. This growth was primarily driven by robust over-the-counter (OTC) market investments and consistent central bank purchases. Although bar and coin demand also saw a 3 per cent rise, excluding OTC transactions, overall demand dipped by 5 per cent to 1,102 tonnes in Q1 2024 compared to the same period last year. In 2023, ETF outflows and a slight decrease in bar and coin demand led to a total annual gold investment decline to a 10-year low of 945 tonnes, dropping by 244 tonnes from the previous year. Additionally, Q1 2024 witnessed a global decrease in gold ETF holdings by 114 tonnes. Notably, Asia, particularly China, experienced growth in gold-backed ETF holdings in 2023, driven by global geopolitical tensions, declining dollar index, US bond yields, and uncertainty regarding future rate cuts by the Federal Reserve.

Akshaya Tritiya 2024: Gold Investment Strategy

"Investors have an opportunity to accumulate gold systematically during dips, with prices remaining above Rs. 68,500 per 10 grams. Initial upside potential targets are set at Rs. 74,000 per 10 grams, followed by Rs. 78,000 per 10 grams levels. Conversely, a decisive break below the previous swing low of Rs. 65,200 per 10 grams could disrupt the trend, potentially leading gold to retest the Rs. 63,300-Rs. 63,800 per 10 grams range," said Religare Brokerage.

Akshaya Tritiya 2024: Should You Buy Gold? Check Brokerage Recommendations

Gold prices have shown a persistent upward trend, registering approximately a 12.50 per cent gain on domestic exchanges. Currently, prices are consolidating around Rs. 70,000 per 10 grams, with this level acting as a crucial pivot.

"While buyers may be hesitant during this consolidation phase, a slight dip towards the 50 SMA at Rs. 68,500 per 10 grams could present a favourable buying opportunity for the next leg of upward momentum. On the weekly chart, prices have extended away from the 20 SMA and 50 SMA, indicating a potential pullback. A temporary pause in prices, especially with a bullish flagpole pattern in play, suggests a positive signal, possibly extending further before resuming the upward trajectory," said Reliagre Brokerage.