Gold demand in India has picked up slightly this week ahead of Akshaya Tritiya, the second-biggest gold-buying festival in India after Dhanteras when buying gold is considered auspicious. According to reports from The Hindu BusinessLine, Akshaya Tritiya will be celebrated on April 19, with retail buyers beginning to make bookings for the festival. However, footfalls are significantly lower than normal as consumers struggle to adjust to higher prices. The festival is observed on the third day of the bright half of the Hindu month of Vaisakha, with Hindu belief linking the day to prosperity, good luck, and new beginnings. Many people prefer to buy gold on this day as it is seen as a way to bring good fortune and financial stability, with the belief that anything started on this day will continue to grow.
Domestic gold prices in India were trading around ₹1,52,800 per 10 grams on Friday, after rising to a three-week high of ₹1,54,934 per 10 grams earlier this week. As reported by The Hindu BusinessLine, dealers quoted discounts of up to $6 an ounce and premiums of $9 an ounce over official domestic prices this week, inclusive of 6% import and 3% sales levies. This compares with last week's discounts of up to $8 an ounce and premiums of $2. Despite the cultural significance of Akshaya Tritiya, buying trends often change depending on prices - when gold is expensive, people tend to buy less even during the festival, while demand usually increases when prices are lower.
Gold is an important part of Indian households and is seen as a symbol of wealth and security, treated as a long-term asset that can be saved or passed on to the next generation. Jewellery shops launch special designs and offers during Akshaya Tritiya, with the festival now one of the most important times for gold sales in India alongside Diwali and the wedding season. However, there is no proof that buying gold on a specific day brings better returns, as gold prices depend on global demand, inflation, and currency changes rather than festivals. The cultural belief that Akshaya Tritiya brings never-ending prosperity has turned into a major shopping event, with many people planning their gold purchases around this day. As per JewelBuzz, Akshaya Tritiya remains one of the most significant occasions for jewellery retailers, contributing nearly 15-18% to their annual revenue.
In top consumer China, bullion traded at premiums of $3 to $5 an ounce over the global benchmark price this week, according to The Hindu BusinessLine. This represents a significant decline from last week's premiums of $12-$17. Chinese premiums narrowed sharply due to softer retail demand and expectations of quota loosening, said Bernard Sin, regional director of Greater China at MKS PAMP. China's central bank maintained gold purchases for a 17th consecutive month, supporting market sentiment despite global price weakness.
Jewellery demand remains weak, down about 25% year-on-year, while investment demand is still resilient but more selective. Meanwhile, international spot gold prices were on track for a third consecutive weekly gain on optimism surrounding the U.S.-Iran ceasefire. The cultural significance of Akshaya Tritiya continues to hold strong emotional value for many Indians, but while it is seen as a lucky day, the actual value of gold depends on market conditions rather than the date of purchase.
