Akshay Tritiya: Gold futures held near a record high of Rs 47,327 on Friday
Retail demand for gold suffered on the occasion of Akshay Tritiya on Sunday, as jewellery shops remained shut due to coronavirus lockdown. Traders are exploring the option to sell on the digital platform in a market where gold prices are hovering near an all-time high.
Indian gold futures held near a record high of Rs 47,327, when trading closed on Friday.
Analysts suggest that gold is a healthy hedge at a time when the equity and other markets are grappling with pangs of uncertainty.
"In 2019, gold prices have rallied over 25 per cent and this year again it has given nearly 10 per cent returns. It's a hedge against inflation, an investment and it is an insurance depending on the market participant. Under the time of distress or panic gold performs best as investors wants to get out of riskier asset and take a shelter," Navneet Damani, VP - Commodities Research, Motilal Oswal Financial Services, said.
"With impending global recession, stimulus packages being generously doled out, uncertainties on oil and other asset classes looming, gold can be a part of portfolio fractionally, around 10 per cent," Prashant Joshi, Co-founder and Partner, Fintrust Advisors, said.
However, gold sellers are not witnessing the usual fervour in the bullion market on Akshay Tritiya.
"Usually ahead of Akshaya Tritiya, jewellers make purchases, but this year no one's buying,"Harshad Ajmera, proprietor of JJ Gold House, a Kolkata-based wholesaler told news agency Reuters.
Many jewellers have announced plans to sell gold online on the festival and deliver it after the lockdown is lifted, "but retail buyers are not interested in online purchases due to the higher price and uncertainty about delivery", said a Mumbai-based dealer with a private bullion importing bank.
