Akshaya Tritiya 2025: Here's why gold can be a smart long-term investment

Analysts at brokerage firm Motilal Oswal Financial Services maintain a positive long-term outlook on gold, recommending investors to "buy on dips" with a target price of ₹1,06,000

Akshaya Tritiya 2025, Gold rate: Gold prices have witnessed heightened volatility in the last few months following global uncertainty and a shift in investor sentiment caused by US President Donald Trump's tariff threats, geopolitical tensions, and the US Federal Reserve's monetary policies. 

 

In the first quarter of the calendar year 2025 (Q1-CY25), Gold prices surged around 18 per cent. The rally pushed gold to an all-time high of $3,500 per ounce and above the ₹100,000 per 10 grams, back home. However, the yellow metal faced a sharp pullback as global trade tensions showed signs of easing. 

 

Amid this, ahead of Akshaya Tritiya 2025, analysts at brokerage firm Motilal Oswal Financial Services (MOFSL) maintain a positive long-term outlook on gold, recommending investors to "buy on dips" with a target price of ₹1,06,000. 

 

"Investors can start accumulating Gold near the mentioned support zone of  ₹90,000-91,000 for the long-term targets of ₹ 1,06,000. The metal has resistance near ₹99,000," said Manav Modi, senior analyst for commodity research at MOFSL.

 

Gold prices, he said, have posted a sharp rally over the last couple of months and, hence, there could be some cool-off in prices in the near-term.  "Mixed economic data points, tariff war, higher inflation expectations, rise in slower growth concerns, rate cut expectations, geopolitical tensions, concerns regarding rising debt, increase in demand and fall in US Yields could act as tailwinds for gold prices," Modi added. Any sign of ease in these uncertainties could put pressure on bullion, he said.

Gold prices in 2025

     

In April 2025, gold prices witnessed sharp volatility driven by President Trump's economic policies. Gold prices touched a record high of $3,500 as investors sought safety amid Trump's tariff threats and public attacks on Fed Chair Jerome Powell, raising fears over the Fed's independence. However, towards the end of last week in April, gold prices fell by over 2 per cent as signs of easing US-China trade tensions emerged.

 

Meanwhile, the Fed, on its part, has opted for a cautious and data-driven stance, keeping interest rates steady at 4.25–4.5 per cent amid slowing growth projections and inflation that remains above the 2 per cent target. A pause in balance sheet reductions and the possibility of future rate cuts later this year have kept gold in focus as a hedge against policy risks.

How to buy Gold this Akshaya Tritiya 2025? 

 

Over the last 15 years, gold has delivered a compound annual growth rate (CAGR) of 10 per cent around Akshaya Tritiya. Apart from a few instances of correction, gold prices have largely remained consistent and stable. Investors have several avenues to invest in gold based on their risk profile ETFs, exchange-traded derivatives, digital gold, and physical bars.