Gold price rises ₹40,000 in 5 years, experts predict up to ₹85K peak next year

Akshaya Tritiya, a significant day for gold purchases in India, witnessed a sharp increase in gold prices in 2024. The rise in domestic demand, coupled with falling US dollar rates, led to a surge in gold rates during early morning trading. Gold future contracts on the Multi Commodity Exchange (MCX) for June 2024 expiry opened higher at ₹71,730 per 10 gm and reached an intraday high of ₹72,230 per 10 gm. In the international market, COMEX gold price climbed $21 per troy ounce to reach $2,361, while spot gold price hovered around $2,355 per ounce.

Why did gold prices rise on Akshaya Tritiya?

Gold prices soared today due to the US dollar coming under pressure after the Central Bank of England decided to maintain interest rates unchanged. Anuj Gupta, Head of Commodity & Currency, explained, "Market expectations of a rise in interest rates led to profit-booking in the currency market, boosting gold prices. Additionally, Indians celebrating Akshaya Tritiya contributed to increased domestic demand for gold and silver."

Gold's impressive performance over the years

Comparing gold returns over the years, the yellow metal has surged from ₹31,729 per 10 gm in 2019 to ₹72,100 per 10 gm in 2024, marking a significant rise of nearly ₹40,000 per 10 gm. This growth underscores gold's status as a valuable investment option for Indians seeking financial security on auspicious occasions like Akshaya Tritiya.

Gold price outlook for Akshaya Tritiya 2025

Experts predict that gold prices will continue to climb, with expectations of reaching peaks of up to ₹85,000 in the upcoming year. The year 2023 saw a substantial increase in gold prices globally, driven by geopolitical tensions, central bank actions, fluctuating dollar index, and shifts in US yields. Central banks worldwide significantly increased their gold purchases, acquiring 1,037 tonnes in 2023 alone.

Choosing silver over gold

Investors looking for alternatives to gold may consider silver as a promising investment option. Silver has shown impressive year-to-date increases, outperforming gold in certain periods. With both positive and negative factors influencing gold prices, silver presents a compelling opportunity for investors seeking diversification and potentially higher returns.

Final thoughts on gold's future

Despite the recent surge in gold prices, experts believe there is still room for further growth, with projections indicating prices could reach ₹80,000 to ₹85,000 by the next Akshaya Tritiya. Investors are advised to enter the market at around ₹69,000 to ₹69,500 for long-term investment benefits. As market dynamics continue to evolve, gold remains a resilient asset, offering stability and potential returns amidst economic uncertainties and geopolitical risks.

In conclusion, Akshaya Tritiya 2024 has seen a significant rise in gold prices, driven by a combination of factors affecting global markets. With experts forecasting further growth in gold prices, investors have the opportunity to capitalize on this lucrative investment option for financial security and wealth creation. As you celebrate this auspicious occasion, consider the potential of investing in gold to secure your financial future.