Axis Securities says the recent fall in gold prices ahead of Akshaya Tritiya has given investors a good opportunity to buy the precious metal. Gold futures on MCX were trading around 1.5% 50,992 per 10 grams, tracking weak global cues. Silver futures down 1.8% 63,200 per kg. Gold prices fall sharply from March highs 55,600 as traders bet on aggressive rate hikes by the US Fed. A strong US dollar has also dampened the safe haven appeal of gold.
gold prices The time of Akshaya Tritiya has hit historical highs, but this time rising anticipation of an aggressive policy stance by the Fed has put pressure on the metal prices.
“This may be a perfect time for investors looking for an opportunity to start investing in gold. Recently, gold prices have come under pressure as the Federal Reserve is almost certain to approve a 50-basis point hike in May’s policy meeting on Wednesday, the highest hike in two decades,” said Pritam Patnaik, Head – Commodities, say HNIs and NRI takeovers.
“During periods of high inflation, recession and geopolitical turmoil, gold has been the asset of choice as the ultimate safe haven. Of late, a strong US dollar has diverted some of the flow, but gold remains the biggest gainer.”
Mr. Patnaik suggests a staggering approach to investing.
“One can consider investing a portion of one’s allocation during the auspicious date and allocate the remaining amount later as prices fall, which will be around the dates of Fed policy rate announcements,” he said. “
Domestic brokerage Motilal Oswal suggests a cautious approach to investing in gold until “market participants understand how the interest rate hike cycle and geopolitical uncertainties will affect the market and overall economic numbers.”
“However, we maintain a positive bias in silver and suggest a downside position. Along with safe haven, silver is also gaining support as an industrial metal creating a positive outlook for the white metal.”