In the run up to the Akshaya Tritiya festival falling on April 18 this year, buyers of the precious yellow metal will be witness to the costliest gold price ever as according to a Times of India report, in recent history, gold during the course of this festival has never surged beyond the Rs. 30,000 mark for 10 gm of gold. Plus the GST factor can also be not ignored with physical gold attracting GST @ 3%.
On Saturday, gold in Ahmedabad was quoted at Rs 32,300 per 10 grams.
Also geopolitical tensions between the US and Syria coupled with volatile equity and surging crude oil price which in the recent has touched 70$ per barrel is making the metal shine.
Notably, in the year to date, the yellow metal has given a return of as much as 3%.
While, gold is no longer a suitable hedge against inflation, gold bought on or around this festival in light of its auspiciousness to buy gold 10 or 20 years back has yielded double-digit returns. The same is unlikely to happen any time soon but more buoyancy in the metal is likely to occur on the back of turbulent geo-political landscape and uncertain crude situation which regains the safe haven appeal of the metal.
If market experts are to go by, the prices of the yellow metal will remain firm ahead of the festival.
Spot gold was up 0.1 percent at $1,346.1 an ounce as of 0115 GMT after an initial dip, and U.S. gold futures rose 0.1 percent to $1,349.2 an ounce.
In the domestic market 24k gold was trading at Rs. 32,420 per 10 gm with a change of Rs. 20 against yesterday's price.