Gold prices have fallen this week, and as Akshaya Tritiya approaches, many people are wondering if it is a good time to buy gold. On Wednesday, spot gold was down 0.4% at USD 3,302.58 per ounce as of 4:30 a.m. GMT, while US gold futures fell 0.7% to USD 3,310.70.

The declining gold prices emerged when the US dollar became stronger alongside the reduction of worldwide trade obstacles. An increasing value of the US dollar leads to higher prices for gold when international buyers make payments in alternative currencies thereby decreasing purchasing interest.

As per tradition in India the festival day of Akshaya Tritiya is considered optimal for buying gold. Humantradition dictates that participants spend their money on gold during this period as a symbol of good fortune and abundance. 

Many potential gold buyers have delayed their buying decisions this year because the commodity reached its historical record at Rs 96,000 per 10 grams.

Dr. Renisha Chainani from Augmont stated that during the previous twenty years gold achieved about 15% CAGR indicating solid performance compared to various fixed-income instruments and specific equity areas during market uncertainties.

The expert stated that gold behaves as an inflation defender while protecting value during currency value decrease alongside political uncertainties.

Why are gold prices falling?

Gold demand has increased because of Russia-Ukraine conflicts along with Middle Eastern unrest and growing tensions during US-China trade disputes.

The worldwide inflation fears have motivated investors to buy gold because it is considered a reliable investment during periods of price hikes. Central banks throughout India together with China have decided to expand their holdings of gold.

Furthermore, as the rupee has weakened against the US dollar, gold has become more expensive in the domestic market.

Dr. Renisha Chainani believes that the festive season is still a good time to invest in gold.

She claims that purchasing gold on Akshaya Tritiya has both cultural and monetary value. According to her, gold can help balance an investor's portfolio, particularly when the stock market is struggling.

Chainani added that gold is likely to remain strong in the near future as global uncertainty persists and interest rate cuts are expected in the United States. Demand for digital gold and investment-grade gold is also rising, as more people seek out simple and transparent ways to purchase gold.

However, experts advise caution because of the current high prices. With gold nearing record highs, now may not be the best time to make large or rushed purchases. If trade tensions ease or interest rates rise faster than expected, gold prices could fall.Furthermore, if investors begin to shift their funds back into stocks or other high-risk assets, the demand for gold may decline.

Experts recommend a wise purchasing strategy for dealing with this situation.

Rather than making a large one-time purchase, buyers could make smaller, planned investments using gold SIPs (Systematic Investment Plans) or purchasing digital gold. Starting with a small investment in Akshaya Tritiya can be an excellent starting point.

Due to their convenience in trade liquidity the popularity of Gold mutual funds together with exchange-traded funds (ETFs) is expanding.

People who wish to buy physical gold can opt for coins and lightweight jewellery items because their lower production expenses make them sellable in the future. Investors should look for positive returns from gold by treating it as a long-term asset which requires minimum three to five years of holding period.

The current market situation was described by Aksha Kamboj who serves as Vice President of the Indian Bullion and Jewellers Association (IBJA).

According to her perspective the reliability of gold rises from present geopolitical instability and currency movement processes. The price of gold will experience some temporary adjustment yet developers identify it as an enduring safe asset.