Planning to buy gold this Akshay Tritiya? First, understand this game of consolidation.

In India, purchasing gold on Akshay Tritiya is considered auspicious. This is precisely why gold sales typically surge on this day. Following a meteoric rise, gold prices have now witnessed a moderation. Foreign brokerage firm Jefferies suggests that gold has now entered a "consolidation phase." When the price of a commodity rises significantly within a very short span, the market typically pauses briefly to "absorb"—or adjust to—that elevated price level. This process is known as consolidation.

Following intense buying activity across major markets such as India, China, and the US, the pace of demand is now beginning to slow down. This, however, does not imply in any way that gold has lost its luster or that prices are poised to plummet. Rather, it signals that prices are likely to trade within a limited, defined range for the time being. Jefferies cautions that, under these circumstances, investing a large lump sum at current elevated price levels could prove to be a risky proposition.

**Buying on Akshay Tritiya: What Should Be Your Strategy?**

While purchasing gold on Akshay Tritiya is considered auspicious, the benefits of such an auspicious act are often doubled when executed with prudence. Experts have offered tailored advice to cater to varying requirements:

**If there is a wedding in the family or a need for jewelry:** If you anticipate requiring jewelry within the next 3 to 6 months, you can capitalize on the current dip in prices. Instead of purchasing your entire requirement in a single transaction, consider buying a portion of the gold you need right now and waiting for a slight correction in prices to acquire the remainder.

**SIPs are Best for Long-Term Investment:** If your objective in buying gold is purely for investment purposes, the most prudent course of action is to initiate a Systematic Investment Plan (SIP) in Gold ETFs or Gold Mutual Funds, rather than purchasing physical gold. Kainat Chainwala of Kotak Securities notes that the most effective strategy to mitigate the risks associated with market volatility is to gradually increase one's investment exposure over time.

**Will Gold Prices Reach ₹1.85 Lakh?**

Axis Securities projects that, over the course of the next year, gold prices in the domestic market could potentially range between ₹1,70,000 and ₹1,85,000 per 10 grams. On the international stage as well, prices could once again touch the $5,300 to $5,500 range. This simply means that the current pause is merely a ‘break’—the long haul is yet to come.

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