Dhanteras marks the beginning of the five-day long festival of Diwali. Buying something new and valuable on this day is considered to bring luck and prosperity. Indians' love for gold knows no bounds, it is the second-largest consumer of gold. In the run-up to the festive and marriage season coupled with unlocking across India, the demand for gold is likely to pick up, helping the price. Gold is seen as a serious investment and asset class by Indian households.

"After posting stellar gains for the past few years, the yellow metal has been trading range-bound in the past 12 months. Gold outperformed as an asset class in 2020 but lost its sheen as economies across the globe emerged out of the shadows of COVID19. Gold prices are still far away from their all-time high witnessed in August 2020," stated Nish Bhatt, Founder & CEO, Millwood Kane International on Gold buying during Dhanteras.

"Concerns of tapering, strengthening US Dollar, and high rate of vaccination have dampened prospects for gold. Going forward, the actions by the global central banks mainly the US Fed on the liquidity tightening will guide gold prices," he added.

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.