Gold demand is expected to be more than double the 20 tonnes sold on Akshaya Tritiya day in 2016 and jewellers have stocked up ahead of this all-important festival on the India gold calendar.
"Jewellers are anticipating good retail demand during Akshaya Trititya. They are quite active in the market this week," Daman Prakash Rathod, a director at MNC Bullion, a wholesaler in Chennai, told Reuters.
"The demand is expected to go up in rural areas due to good monsoon rains. That's why we have seen good (gold) imports in the last three months," said a Mumbai-based bank dealer with a private bank.
"Demand in India is definitely picking up but demand in rest of Asia is slow as prices have moved up ... people are selling more than buying," said a Singapore-based banker.
Is Gold attractive this Akshaya Tritiya?
Gold prices have risen around 4.5% this calendar year and are below the 2016 Akshaya Tritiya close of Rs 30000 per 10 grams.
At the current level of elevated political tension in North Korea and Syria, and economic uncertainties, gold would continue to hold its haven appeal. History suggests that prices of precious metals rise in case of inflationary pressures and geopolitical tensions. Also, with global equity markets showing signs of peaking, gold is becoming a preferred asset in these uncertain times. It has proved, time and again, its ability to given returns to a buyer in time of uncertainty, Sify.com's Gold expert Gnanasekar Thiagarajan feels.
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