Gold price has surged from around $2,000 per troy ounce in early 2022 to $4,000–$4,500 levels.(Photographed by Hemant Mishra/ Mint)AI Quick ReadAkshaya Tritiya 2026: In Hindu and Jain religions, Akshaya Tritiya, or Akha Teej, is an auspicious day of new beginnings. Investors across the country buy gold and even other asset classes with hopes that their investment will bring prosperity and create a positive effect in their lives.
This Akshaya Tritiya appears to be a suitable opportunity for investors to buy gold for the long term, as prices on MCX are down more than 20% from their record high, largely due to crude oil price volatility, the dollar's rise, and fading expectations of rate cuts by the US Federal Reserve in the near future.
Despite the recent fall in gold prices, the fundamental uptrend remains intact. Though there were ETF outflows in March, central bank demands helped gold prices rise.
Many experts recommend buying gold for the long term due to the following three reasons:
Record global debt and an ongoing shift away from the US dollar as a primary reserve asset are strong positives for gold prices, making it an essential asset class to have in one's portfolio.
"The long-term outlook for gold remains exceptionally bullish, fueled by a 'perfect storm' of structural shifts in the global financial order. At the forefront is the staggering level of record global debt and an unprecedented expansion in money supply, which continues to erode the purchasing power of fiat currencies. This is further compounded by a fragile currency market and a growing distrust in the US dollar as a primary reserve asset," Ajay Garg, Director and CEO, SMC Global Securities, noted.
With global order changing, old alliances collapsing and new ones emerging, there is a move toward de-dollarisation.
"Central banks have already signalled their stance by buying gold at record levels, seeking a neutral asset that offers global acceptability and protection against the seizure of sovereign reserves," Garg noted.
Divya Mandaliya, a commodity research analyst at Anand Rathi Share and Stock Brokers, highlighted that de-dollarisation is no longer just a theme; it’s turning into a clear structural shift, and central bank buying tells the story.
"The average annual purchases have more than doubled, rising from nearly 473 tonnes (2010–2021) to over 1,000 tonnes since 2022, marking an unprecedented and sustained accumulation cycle. What stands out is the consistency this trend has held firm across rate cycles, geopolitical shocks, and shifting macro conditions, pointing to a deeper rethink in reserve strategy," Mandaliya noted.
"Sentiment among central banks is strong. A record 95% expect global gold reserves to rise further this year, while 43% plan to increase their own holdings. Not a single respondent expects a decline, signaling rare, near-unanimous conviction in gold’s role ahead," Mandaliya added.
The global growth outlook has taken a hit due to geopolitical conflicts, improving gold's appeal as a safe-haven asset class. Geopolitical instability and economic fragility can drive both retail and institutional investors towards gold.
"Immediate pressures such as the fear of recession and the persistence of regional wars are cementing gold’s status as the ultimate safe haven. While the expected rate cuts by the Federal Reserve may be delayed, the eventual pivot toward lower interest rates remains a powerful tailwind, as it reduces the opportunity cost of holding non-yielding bullion," Garg said.
Given these macroeconomic tailwinds, Garg believes gold may rise to ₹1,70,000 in the medium-term, while in the long-term, he sees the metal firmly set on a path toward ₹2,00,000.
Rising internet penetration and fintech apps have made gold accessible to everyone, driving the retail boom towards this asset class.
"There is a massive wave of Gen Z involvement because they can now jump in with lower ticket sizes—essentially buying 'spare change' gold—while an increasing awareness of market volatility makes it a logical hedge," Garg highlighted.
Weakening economic sentiments and the shadow of global wars are pushing investors back to what they trust.
"For many of us in India, gold is deeper than a ticker symbol; it’s in our culture, heredity, and civilisation. It’s the safe money our grandparents swore by, now updated for the smartphone age. This mix of high-tech access and old-world security has helped gold maintain a solid 10-year CAGR of roughly 13.2%, proving that even as the world changes, our collective herd instinct for gold remains as shiny as ever," Garg noted.
Read all market-related news here
Read more stories by Nishant Kumar
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
Nishant is a market reporter at Mint, where he holds the official designation of Principal Correspondent – Markets. He has been closely tracking the Indian stock market as well as major global stock markets along with the broader macroeconomic trends for a decade.
He is obsessed with breaking down complex financial and economic concepts into clear and engaging stories. He focuses not only on what is happening in the markets, but also why it matters.
His coverage includes stock market trends, sector rotations, monetary and fiscal policy developments, inflation, growth data, and personal finance strategies.
With nearly 10 years of experience in covering financial markets, Nishant has covered bull markets, corrections, policy transitions, and macro developments that has equipped him with a deep understanding of how domestic and global forces shape markets and affect investments.
He regularly interviews market veterans, fund managers, economists, policymakers, and corporate leaders to provide readers with a 360-degree view of market dynamics and the broader economic landscape.
Before joining Mint, Nishant worked with some of India’s most respected business newsrooms, including The Economic Times and Moneycontrol, where he reported extensively on the stock market, corporate earnings, macroeconomic trends, GDP, inflation, monetary policies of the RBI and the US Federal Reserve, bonds, and currencies.
Apart from economics and investing, he has interests in geopolitics and emerging technologies, such as AI.