Planning to Invest in Gold? Here's What You Should Know
Gold has delivered impressive returns over the past few years, making it a favourite among investors. But if you're planning to invest now, experts suggest avoiding a big one-time purchase.
According to Motilal Oswal Financial Services (MOFSL), a staggered investment strategy is a smarter option, especially when prices are trading near record highs.
MOFSL expects gold prices to correct by around 6% to 8% before beginning another upward journey over the next 12 to 15 months.
For Indian investors, the preferred accumulation zone is between Rs 1.30 lakh and Rs 1.33 lakh per 10 grams. MOFSL has set a medium-term target of Rs 1.68 lakh, with a longer-term target ofRs 1.93 lakh per 10 grams.
When real interest rates rise, investors often move towards income-generating assets, which can weigh on gold prices. On the other hand, expectations of lower interest rates usually improve gold's appeal.
Investors should closely watch US inflation data, Federal Reserve policy decisions, global liquidity, central bank gold purchases, and ETF inflows in the coming months.
It is widely used in electronics, renewable energy, and electrical equipment. As a result, silver prices are influenced by industrial demand, economic growth, investor sentiment, and interest rate trends, making the metal more volatile.
Gold and silver continue to be valuable long-term portfolio diversifiers. However, experts advise investors to stay disciplined, invest gradually, and avoid making decisions based on short-term market movements. Keeping track of inflation, interest rates, and central bank policies will be key to making informed investment decisions.
Disclaimer:
According to Motilal Oswal Financial Services (MOFSL), a staggered investment strategy is a smarter option, especially when prices are trading near record highs.
Why Gold Prices May Not Rise Immediately
Gold is no longer driven only by geopolitical tensions. Factors such as US inflation, interest rates, and real bond yields now play a major role in deciding where prices move next.MOFSL expects gold prices to correct by around 6% to 8% before beginning another upward journey over the next 12 to 15 months.
What's the Ideal Buying Range?
Instead of investing a lump sum, the brokerage recommends buying gradually at different price levels.You may also like
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For Indian investors, the preferred accumulation zone is between Rs 1.30 lakh and Rs 1.33 lakh per 10 grams. MOFSL has set a medium-term target of Rs 1.68 lakh, with a longer-term target ofRs 1.93 lakh per 10 grams.
Why Interest Rates Matter
Unlike fixed deposits or bonds, gold does not generate regular income. This makes interest rates a key factor for the yellow metal.When real interest rates rise, investors often move towards income-generating assets, which can weigh on gold prices. On the other hand, expectations of lower interest rates usually improve gold's appeal.
Investors should closely watch US inflation data, Federal Reserve policy decisions, global liquidity, central bank gold purchases, and ETF inflows in the coming months.
What About Silver?
MOFSL says silver behaves differently from gold because it has strong industrial demand in addition to its role as an investment.It is widely used in electronics, renewable energy, and electrical equipment. As a result, silver prices are influenced by industrial demand, economic growth, investor sentiment, and interest rate trends, making the metal more volatile.
Gold and silver continue to be valuable long-term portfolio diversifiers. However, experts advise investors to stay disciplined, invest gradually, and avoid making decisions based on short-term market movements. Keeping track of inflation, interest rates, and central bank policies will be key to making informed investment decisions.
Disclaimer:
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