Gold should cement its reputation on Akshaya Tritiya

Prithviraj Kothari

Gold prices are likely to remain elevated in the near term on escalating geopolitical tensions, along with buying seasons ongoing in India. If geo-political tensions taper off, we may see some corrections in gold prices, which would set the trend for other precious metals to follow.

In India, the impact of gold price rise in the global markets was lower due to appreciation in the rupee against the dollar. Since the Donald Trump administration has hinted at economic worry over strengthening dollar, the rupee might strengthen further from the current 5 per cent appreciation in the last three months. This means Indian consumers of precious metals will continue to pay less than the normal currency level.

Akshaya Tritiya is considered one of the most auspicious days in the Hindu calendar. The significance of this day is Akshaya -means never diminishing - and any venture started on this day continues to grow and bring prosperity. After Dhanteras, the maximum purchase of gold, silver and platinum happens on this day.

Five-month-high prices in gold have given rise to anxiety. People are wondering whether this price rise will sustain. There is only one answer to this: Gold should be a part of everyone's portfolio. Safe haven, as it is termed.

This festive season, gold is at Rs 28,000-29,000, and silver at Rs 39,000-41,000, and it can be a good price to make purchases. The price range for Gold Buy on Dips US $1234 to US $1264, resistance US $1,304 to US $1,320 (Rs 28,000 downside and Rs 31,000 upside). Silver Buy on Dips US $17.00 to US $17.20, resistance US $19.50 to US $20.20 (Rs 38,500 downside and Rs 43,500 upside) can be a good level to make purchases.

The writer is Managing Director, RiddiSiddhi Bullions Ltd