Mumbai
Silver could reach Rs 1,25,000 per kg on the MCX and USD40 on the COMEX within the next 12 to 15 months, potentially outperforming gold. This comes as silver has already gained over 40% this year, surpassing the Rs 100,000 mark in India due to increased demand for safe investments and strong industrial use, according to report on Saturday.
The report also sets a target for gold prices, forecasting Rs 81,000 in the medium term and Rs 86,000 in the long term. Gold is expected to reach USD 2,830 on COMEX in the medium term and USD 3,000 in the long term.
Manav Modi, an analyst with MOFSL, explains that 2024 has seen a significant price rise due to uncertainties in the market, expected interest rate cuts, and a weaker rupee. He notes that the period following the upcoming US presidential election will be crucial for gold prices.
The sentiment for precious metals this Diwali is positive, with expectations of strong sales. Historically, gold has been a reliable investment during uncertain times, and those who bought gold during Diwali 2019 have seen 103% returns by this Diwali. MOFSL believes that gold still has room to grow, and any price drops of 5-7% could offer good buying opportunities. Rising tensions in the Middle East and expectations of Federal Reserve rate cuts are key factors driving this year’s rally in precious metals.
