Gold and silver futures experienced significant gains on Wednesday, with gold contracts for April delivery increasing by ₹3,000, or nearly 2%, to ₹1.58 lakh per 10 grams on the Multi Commodity Exchange (MCX). According to the All India Sarafa Association, silver prices soared by ₹11,800, or 4.81%, to ₹2.57 lakh per kg from Monday's closing level of ₹2.45 lakh per kg. In international markets, gold futures rose 0.77% to $4,828.17 per ounce in New York, while Comex silver futures climbed 1.84% to $90.44 per ounce. However, spot gold fell USD 45.88, or nearly 1%, to USD 4,795.97 per ounce on Wednesday, while silver slipped 1.2% to USD 78.61 per ounce. Latest data shows 24K gold now above ₹1,50,000 per 10 grams, with domestic rates having surged over the past two sessions by a cumulative ₹289 per gram.
The sharp rise in prices can be attributed to pre-festival buying amid expectations of strong retail demand for the auspicious Akshaya Tritiya festival, as reported by the All India Sarafa Association. Chetan Thadeshwar, Chairman & MD of Shringar House of Mangalsutra Ltd, noted 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. Uncertainty around US trade policy and supportive global trends lifted sentiment for silver, with market participants noting that demand expectations ahead of Akshaya Tritiya — a key occasion for gold purchases in India — are also supporting sentiment in the domestic market. The festival traditionally drives significant gold buying activity in India, with jewellery demand in India typically seeing a seasonal surge ahead of the wedding season and auspicious buying occasions.
According to CNBC TV18 reports, Satish Dondapati, Fund Manager at Kotak Mutual Fund, explained that while gold prices have fallen around 8–10% recently due to high interest rates and a strong US dollar, gold is still up around 45–50% compared to last year. He noted that the near-term outlook remains mixed, with potential volatility if inflation rises due to higher oil prices, while higher inflation forces central banks to keep interest rates high, creating a mixed environment. Hopes of de-escalation between the US and Iran have eased concerns over an energy-driven inflation shock, improving sentiment toward precious metals, as analysts said Washington and Tehran are working to schedule a second round of talks after last weekend's negotiations failed to produce an agreement. Gold prices are likely to remain volatile in the near term, with direction hinging on developments in US-Iran talks, crude oil price movements, and any fresh signals from the US Federal Reserve.
As reported by CNBC TV18, Ankur Punj, Managing Director and Business Head at Equirus Wealth, emphasized that gold continues to hold relevance as a strategic asset, best viewed as a long-term diversifier and hedge rather than a short-term trading vehicle. He suggested that gold allocation should typically form 10–15% of portfolios for investors, with market expectations of much higher prices over the next three years. According to InCred Money, Indian households are estimated to hold 11–16% of all the gold ever mined above ground, reflecting its entrenched role as a store of value. Investors should be prepared for potential price fluctuations in precious metals ahead of Akshaya Tritiya, as noted by the All India Sarafa Association. However, with 24K gold now above ₹1,50,000 per 10 grams, affordability remains a concern for retail buyers, particularly in Tier 2 and Tier 3 cities where price sensitivity is higher, with many consumers opting for lighter jewellery pieces or shifting to gold savings schemes.
According to InCred Money reports cited by CNBC TV18, gold's long-term appeal in India remains underpinned by strong household ownership and macroeconomic factors. The firm noted that while gold witnessed a sharp rally between March 2025 and March 2026, driven by central bank buying, geopolitical tensions, and retail demand, the recent correction reflects short-term macro pressures rather than a shift in fundamentals. Continued central bank accumulation, supply constraints, and persistent global uncertainties continue to support the broader outlook for the metal. COMEX gold's month-on-month performance has improved significantly, down only 3.2% in April 2026, compared to a 13-15% decline in March 2026, signalling a stabilisation in investor sentiment. With Akshaya Tritiya around the corner, short-term physical demand is expected to remain firm, even if prices stay elevated.
