Gold Price Outlook: 3 Common Myths For Buying Yellow Metal On Dhanteras; Date, Time, And How To Invest?

Gold prices in India will be in focus with back-to-back festivals in October. However, the most prominent and popular one is Dhanteras which is literally an auspicious day to buy something glittery, shiny and something yellow, aka gold. Buying gold is a traditional old habit of Indians. Not only, yellow metal has the significance of long-term wealth creation, but it is also a safety net, a heirloom for citizens. This Dhanteras 2024, gold prices will be trending. Amidst the pros and cons of investing, and factors to look for gold, the question that we will look into is the myths of buying gold on Dhanteras.

There are many myths about buying gold on Dhanteras, and newly listed PNG Jewellers have highlighted the three most common myths and the reality behind them.

Myth 1: According to the jewellers' website, the first myth is that 'You should only buy pure 24K gold as it is auspicious'. It explained that though purest, 24K gold purchases are a case where 22K or 18K gold are considered propitious for jewellery making and, at the same time, more practical.

Myth 2: The second unproven myth is that 'Buying gold on Dhanteras guarantees wealth." As per the PNG blog. This is a symbol of gaining wealth through gold, but it is also essential to manage your finances prudently throughout the year.

Myth 3: The last myth is that gold prices shoot up after Dhanteras. As per PNG's blog, gold prices also go around the circles of the market conditions besides Dhanteras.

What Type of Gold to BUY?

According to PNG, the type of gold one should buy during Dhanteras depends on the need and motives behind it. If one wants to wear and enjoy it, then jewellery is the best, whereas coins and bars are ideal for investment because they consume less storage and are easier to sell. If you buy gold as an investment for the long term, then bars or coins will be the better choice. However, if you're looking for something with personal or cultural significance, jewellery could be the right choice.

Gold Price Outlook:

Gold prices witnessed a positive surge in the current due to rising tensions in the Middle East with Israel striking Lebanon-based terrorist group Hezbollah in the regions of Beirut. Also, Israel is in an intense riff-off with Iran, after the Islamic country sent a barrage of missiles on Israeli soil. PM Benjamin Netanyahu has vowed that Israel will retaliate to the second missile attack in less than six months by Iran.

According to Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, Gold prices saw a positive surge this week as Middle East tensions between Iran and Israel kept buyers' position intact even after prices were overbought. Anticipating further continued easing of interest rates will keep Gold buyers interested as prices saw a jump of 1% in MCX at 76300rs in MCX & 2660$ in Comex. Support is placed at 75000 whereas Resistance is at 77000.

Last week, on Friday, MCX gold price with December expiry ended at Rs 76,190, up marginally at the exchange. The gold futures touched a new high at Rs 76,630 per 10 grams on October 4th.

Meanwhile, MCX silver price with December expiry, closed at Rs 93,500, up Rs 151 on Friday. The silver futures touched over Rs 95,300 levels during the trading session of October 4.

Dhanteras 2024:

This year, Dhanteras will be celebrated on October 29, 2024. Dhanteras, also referred as Dhanatrayodashi, marks the first day of Diwali festive in India.

Indian Hindus and in other parts of the world, see Dhanteras as an auspicious day for making new purchases, especially in precious metals like gold, silver, utensils, and other home appliances. Even purchases of new automobile and mobile gadgets are high on this day.