Motilal Oswal Unveils Massive Rally Targets for Precious Metals

Despite sharp price swings throughout calendar year 2026, leading domestic brokerage Motilal Oswal Financial Services has reaffirmed a robust bullish outlook for precious metals, stating that the medium-to-long-term trajectory for bullion remains exceptionally positive. Unlike the largely uninterrupted bull run witnessed throughout 2025, gold and silver have encountered heightened volatility this year, steered by shifting expectations surrounding US Federal Reserve rate trajectories, sticky inflation prints, elevated sovereign bond yields, and persistent geopolitical friction.Navneet Damani, Head of Commodities Research at Motilal Oswal Financial Services, emphasized that while near-term price momentum hinges on the US dollar, central bank reserve diversification, sovereign uncertainties, and record retail investment demand provide an impenetrable floor for yellow metal prices.Buy-on-Dips Targets: ₹1,68,000 on Domestic Radar and $4,700 InternationallyAdvising investors to capitalize on price corrections rather than timing the peak, the report outlines a definitive "buy on dips" strategy across domestic and overseas exchanges.On the global front, spot gold between $3,800 and $3,900 per ounce is identified as an attractive accumulation zone, eyeing a short-term price target of $4,200 and medium-term projections stretching between $4,500 and $4,700 per ounce. For Indian investors, the research house marks the ₹1,35,000 per 10 grams mark as an ideal entry level, charting a short-term target of ₹1,48,000 and ambitious medium-term targets ranging from ₹1,60,000 to ₹1,68,000 per 10 grams.This projection follows historic market turbulence where gold touched a record high near $5,600 per ounce in January 2026 before sliding under $4,000 and staging a steady comeback, alongside silver which crossed $100 per ounce before moderating.ETF Inflows Surge Globally as Festive Dhanteras and Diwali Demand AcceleratesUnderlying physical and financial backing for the metal remains strong, driven by institutional capital flows into exchange-traded funds.Total global gold ETF holdings expanded by 187 tonnes across August and September 2026, reaching an all-time record peak of 4,256 tonnes on the back of historic quarterly net inflows worth $31 billion in the third quarter. In India, domestic investor participation mirrored global trends, with gold ETF inflows leaping 71 percent to ₹44.5 billion in September, while silver ETFs drew fresh allocations worth ₹19.7 billion. With Dhanteras, Diwali, and the winter wedding calendar approaching, retail jewelers and bullion desks are bracing for peak physical purchases, supported by historical market data demonstrating that gold consistently clocks stronger capital appreciation in the 30 days leading up to Diwali compared to the month following the festival.