Zee Media Bureau
New Delhi: The continued weakness in gold prices is likely to push up jewellery sales on Akshaya Tritiya day Tuesday.
Akshya Tritiya is considered an auspicious day for buying gold, silver and other metals. Sales are expected to rise as there is a "positive" buying sentiment this year with gold prices ruling stable at around 26,000 per 10 grams.
It is also expected that Gold Monetisation policy announced by the Finance Minister in the Union Budget may also prompt buyers to purchase gold today and later monetise it with banks.
About 2-3 weeks ago, he said the sales were in slow lane due to the financial year ending. Last year, jewellery sales remained low on the day of Akshya Tritiya due to high gold prices of about Rs 30,000 per ten grams, restricting buyers.
The gold price in the domestic industry is now hovering at Rs 26,000 level.
Leading stock exchanges NSE and BSE has also announced extended trading hours for Gold Exchange Traded Funds (ETFs) till 7 PM on April 21, on account of Akshaya Tritiya.
BSE has also decided to waive off transactions charges for all trades in gold ETFs on that day, when it is considered auspicious to buy the yellow metal,
Going forward, gold is likely to rule at Rs 25,500-26,000 level in the next three months, mainly on view that the US dollar would strengthen further and the Federal Reserve is likely to hike rates, according to experts.
India's gold imports surged 93.86 percent year-on-year to USD 4.98 billion in March 2015 due to declining prices and easing of restrictions by the RBI, as against USD 2.57 billion in the same month in 2014.
India is the world's largest consumer of gold and the precious metal is the second-largest imported item for the country after petroleum.
Higher gold import bill adversely impacts the country's current account deficit (CAD) and the government has been repeatedly asking people to desist from buying gold and instead invest in other saving instruments.
With Agency Inputs
