Gold prices gained on the back of heavy demand due to Akshaya Tritiya buying and the upcoming wedding season. It is considered auspicious to purchase gold on the day of Akshaya Tritiya, which falls on May 7. Gold rates of 99.9 percent and 99.5 percent purity advanced by Rs 75 each to Rs 32,720 and Rs 32,550 per 10 gram, respectively, in Delhi on Monday, reported PTI. Sovereign gold prices held steady at Rs 26,400 per eight gram.

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The industry is expecting high double-digits volume growth given the positive consumer sentiment and stable prices. The retail gold price has come down to around Rs 31,500 per 10 grams from around Rs 33,700 in mid-February.

Global gold prices rose on Tuesday as US President Donald Trump's threat to hike tariffs on Chinese imports re-kindled trade tensions between the two countries and pushed investors to seek insurance in safe-haven assets. Spot gold rate was up 0.2 percent at $1,282.50 per ounce as of 8.50 AM. US gold futures were unchanged at $1,283.90 an ounce.

"We expect robust demand for gold/gold jewellery this Akshaya Trithiya due to price stability since the past few months and the improved consumer sentiment since Gudi Padwa. Looking at the current momentum we expect at least 10 percent demand growth this auspicious occasion," All-India Gems &

Jewellery Domestic Council chairman Anantha Padmanabhan told

PTI.

India Bullion and Jewellers Association National vice president Saurabh Gadgil said he expects 15-20 percent growth in demand this Aksahya Tritiya. "The sentiment is positive as in most places voting will be over and also the festival falls virtually at the beginning of the month when salaried people have a hicker pockets," he told PTI.

India's gold demand is expected to rise in the June quarter from a year ago due to a higher number of auspicious days for weddings and a fall in local prices ahead of a key festival, the World Gold Council said on Thursday.

Silver prices, however, declined Rs 70 on Tuesday due to reduced offtake by industrial units and coin makers. Silver ready dropped by Rs 70 to Rs 38,130 per kg and weekly-based delivery surged by Rs 313 to Rs 37,290 per kg. Silver coins were in good demand and traded higher by Rs 1,000 at Rs 79,000 for buying and Rs 80,000 for selling of 100 pieces, respectively.

(With inputs from Reuters, PTI)

First Published:May 7, 2019 9:57 AM IST