Mumbai: According to Motilal Oswal Financial Services Ltd (MOFSL), silver could either match or outperform gold in the medium to long term. It expects silver to reach targets of ₹1,25,000 on MCX and $40 on COMEX in the next 12 to 15 months. Recently, silver has shown impressive performance, gaining more than 40% YTD and breaching ₹100,000 on the domestic front, fueled by safe-haven buying and robust industrial demand.
MOFSL has also set targets for gold of ₹81,000 in the medium term and ₹86,000 in the long term. It expects gold to reach $2,830 on COMEX in the medium term and $3,000 in the long term. Gold has consistently been one of the best-performing assets in recent years – barring 2021, as the yellow metal has closed in the green on the domestic front since 2016. This year stands out as particularly remarkable, with gold reaching all-time highs on both the Comex and domestic markets, posting gains of more than 30% year-to-date.
Mr. Navneet Damani, Group Senior VP – Commodity Research, Motilal Oswal Financial Services said, “2024 has experienced a significant price rally fuelled by market uncertainties, expectations of rate cuts, rising demand, and a depreciating rupee. The months following the U.S. presidential election will be critical in shaping gold’s near-term trajectory. Hereon, the two key factors underpinning this year’s rally in precious metals are expectations of rate cuts from the Federal Reserve and rising geopolitical tensions, particularly in the Middle East. Overall, the sentiment for this Diwali is projected to be positive, raising optimism for bullion”.