Metal Prices Surge Ahead of Akshaya Tritiya

Silver Prices Soar, Gold Advances Ahead of Akshaya Tritiya

Silver prices surged by Rs 11,800 to Rs 2.57 lakh per kg while gold advanced by Rs 3,000 to Rs 1.58 lakh per 10 grams in the national capital on Wednesday, driven by fresh buying from jewellers and stockists ahead of the auspicious festival of Akshaya Tritiya.

Akshaya Tritiya, considered an auspicious day to buy precious metals, will be celebrated on April 19 this year. The white metal soared by Rs 11,800, or 4.81 per cent, to Rs 2,57,000 per kg (inclusive of all taxes) from Monday's closing level of Rs 2,45,200 per kg, according to the All India Sarafa Association.

Gold of 99.9 per cent purity also jumped Rs 3,000, or nearly 2 per cent, to Rs 1,58,000 per 10 grams (inclusive of all taxes). The yellow metal had settled at Rs 1,55,000 per 10 grams in the previous market session. The local bullion market was closed on Tuesday for a holiday.

Read also: Gold and Silver Prices Decline Amid Strengthening Dollar and Inflation Concerns

The sharp rise in prices can be attributed to pre-festival buying amid expectations of strong retail demand. Traders expect a significant increase in demand for gold and silver during the festival, as it is considered an auspicious time to buy precious metals.

Traders and analysts are optimistic about the demand for gold and silver during the festival. Chetan Thadeshwar, Chairman & MD, Shringar House of Mangalsutra Ltd, said that Akshaya Tritiya continues to be one of the most significant periods for the jewellery industry, driven by both tradition and the enduring value of gold.

However, precious metals traded lower in the international markets. Spot gold fell USD 45.88, or nearly 1 per cent, to USD 4,795.97 per ounce, while silver slipped 1.2 per cent to USD 78.61 per ounce. Despite this, gold hovered around USD 4,800 per ounce on Wednesday, driven by renewed optimism that the US and Iran could reach a deal to end the conflict.

Read also: Gold and Silver Prices in India: A Review of Current Rates Across Major Cities

Analysts said that Washington and Tehran are working to schedule a second round of talks after last weekend's negotiations failed to produce an agreement. Hopes of de-escalation have eased concerns over an energy-driven inflation shock, improving sentiment toward precious metals.