Today is Akshay Tritiya, also known as Akha Teej, a Hindu festival which is considered auspicious for buying the yellow metal. The experts are bullish on buying gold today as the investment will fetch good returns from long-term investment point of view.
Five years back, on Akshay Tritiya, gold prices were at Rs 28,800 per 10 gram, while ten years back, on the same occasion, gold was costing Rs 18,000 per ten gram. So, going by the trend, the experts bet big on gold on this auspicious day for good returns.
“One can start accumulating gold starting from this day as the downside looks limited and the prices may appreciate by 10-12% to Rs 35,000 per ten gram in the next one year,” Amit Sajeja, Associate Vice President, Motilal Oswal told Financial Express Online.
Although, the gold prices are on a higher side on exchanges (Rs 31,600 on MCX) and in spot market at Rs 31,500 one should go long while buying gold as the prices will move up going forward.
“As the monsoon is also good, we expect the prices of gold to go up as the farmers will start accumulating gold from today. So, we think, today is a good time to invest in gold from a long term perspective,” Jigar Trivedi, Fundamental Analyst – Commodities at Anand Rathi Securities Shares & Stock Brokers told Financial Express Online.
Even from the short-term point of view also, investing in gold is profitable as the prices will likely go up in view of uncertainties in the global financial markets. Yesterday, the gold prices surged higher after the financial markets fell on Monday on reports of increasing trade tensions between the two economic giants US and China.
“The gold prices are likely to go up by Rs 300-400 per 10 gram in the next week or so due to uncertainties in the global financial markets on account of Donald Trump’s comments on China. So it is an optimum time for purchasing the yellow metal as the traders will get good returns in short-term also,” Sajeja further said.
Yesterday, the gold prices jumped by around Rs 200 per ten gram after reports that the world’s super economy US is threatening to impose tariffs on Chinese goods in a bid to get additional concessions to reach final trade agreement. Today, the gold prices opened Rs 50 higher at Rs 31,650 per ten gram.