Investors Weigh Opportunity Costs as Gold Demand Surges on Akshaya Tritiya

Akshaya Tritiya 2026: A Suitable Opportunity for Long-Term Gold Investment

In Hindu and Jain religions, Akshaya Tritiya, or Akha Teej, is an auspicious day of new beginnings. Investors across the country buy gold and other asset classes with hopes that their investment will bring prosperity and create a positive effect in their lives. This Akshaya Tritiya appears to be a suitable opportunity for investors to buy gold for the long term, as prices on the Multi Commodity Exchange (MCX) are down more than 20% from their record high, largely due to crude oil price volatility, the dollar's rise, and fading expectations of rate cuts by the US Federal Reserve in the near future.

Despite the recent fall in gold prices, the fundamental uptrend remains intact. Although there were ETF outflows in March, central bank demands helped gold prices rise. Many experts recommend buying gold for the long term due to the following three reasons:

Global Financial Order in Flux

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The changing global financial order, characterized by record global debt and an ongoing shift away from the US dollar as a primary reserve asset, is a strong positive for gold prices. This shift is driving central banks to buy gold at record levels, seeking a neutral asset that offers global acceptability and protection against the seizure of sovereign reserves.

As seen in the table above, average annual purchases have more than doubled, rising from nearly 473 tonnes to over 1,000 tonnes since 2022, marking an unprecedented and sustained accumulation cycle.

Geopolitical and Geoeconomic Uncertainties

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The global growth outlook has taken a hit due to geopolitical conflicts, improving gold's appeal as a safe-haven asset class. Geopolitical instability and economic fragility can drive both retail and institutional investors towards gold.

The Retail Boom

Rising internet penetration and fintech apps have made gold accessible to everyone, driving the retail boom towards this asset class. This has led to a massive wave of Gen Z involvement, with lower ticket sizes and an increasing awareness of market volatility making it a logical hedge.

Given these macroeconomic tailwinds, experts believe that gold may rise to ₹1,70,000 in the medium-term, while in the long-term, gold is firmly set on a path toward ₹2,00,000.

Akshaya Tritiya 2026 presents a suitable opportunity for investors to buy gold for the long term, with prices on MCX down more than 20% from their record high. As the global financial order continues to change, gold's appeal as a safe-haven asset class remains strong, driven by geopolitical and geoeconomic uncertainties. The retail boom, fueled by rising internet penetration and fintech apps, has made gold accessible to everyone, driving the retail boom towards this asset class.