Gold, silver corrections offer buying opportunity; long-term outlook remains positive
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New Delhi, Nov 5 : Gold and silver are likely to remain supported over the medium to long term despite heightened volatility in 2026, with price corrections offering accumulation opportunities for investors, a report said on Thursday, even as the rally of yellow metal takes a pause.
“Unlike the largely one-directional rally witnessed in 2025, precious metals have experienced sharper swings in 2026, driven by changing expectations around US interest rates, persistent inflation, elevated bond yields and geopolitical developments,” the report from Motilal Oswal Financial Services said.
Gold's near-term trajectory will remain sensitive to the US Federal Reserve's monetary policy, inflation trends, movements in the US dollar and real bond yields, said Navneet Damani, Head of Research – Commodities, Motilal Oswal Financial Services.
Meanwhile, central-bank diversification, sustained investment demand and fiscal uncertainties continue to provide structural support to gold, Damani added.
The report maintained a buy-on-dips strategy for gold, identifying an accumulation zone of $3,800-$3,900 per ounce internationally, with a short-term target of $4,200 and a medium-term target of $4,500-$4,700. In India, assuming USD/INR at 96, it cited a preferred accumulation zone at Rs 1,35,000 per 10 grams, with a short-term target of Rs 1,48,000 and a medium-term target range of Rs 1,60,000-Rs 1,68,000.
The report said that investment demand has remained resilient despite high prices. Global gold ETF holdings increased by around 187 tonnes during August and September 2026, reaching a record 4,256 tonnes, while third-quarter inflows touched a record $31 billion. In India, gold ETF inflows rose 71 per cent month-on-month to Rs 44.5 billion in September, while silver ETFs attracted Rs 19.7 billion of inflows.
Gold surged to a record high of nearly $5,600 per ounce in January 2026 before correcting below $4,000 and subsequently recovering. Silver rallied above $100 per ounce before undergoing an even steeper correction.
Similar volatility was reflected in domestic markets, amplified by fluctuations in the USD/INR exchange rate. Historical trends indicate that festive demand has a stronger correlation with domestic premiums, imports and physical buying volumes than with international price movements.
Diwali and Dhanteras remain among India's most important occasions for precious-metal purchases, supported by traditional buying patterns, the wedding season and the cultural significance of gold and silver.
Historical performance also indicates that gold has generally delivered stronger returns during the 30 days preceding Diwali compared with the subsequent 30 days.
—IANS
aar/pk
“Unlike the largely one-directional rally witnessed in 2025, precious metals have experienced sharper swings in 2026, driven by changing expectations around US interest rates, persistent inflation, elevated bond yields and geopolitical developments,” the report from Motilal Oswal Financial Services said.
Gold's near-term trajectory will remain sensitive to the US Federal Reserve's monetary policy, inflation trends, movements in the US dollar and real bond yields, said Navneet Damani, Head of Research – Commodities, Motilal Oswal Financial Services.
Meanwhile, central-bank diversification, sustained investment demand and fiscal uncertainties continue to provide structural support to gold, Damani added.
The report maintained a buy-on-dips strategy for gold, identifying an accumulation zone of $3,800-$3,900 per ounce internationally, with a short-term target of $4,200 and a medium-term target of $4,500-$4,700. In India, assuming USD/INR at 96, it cited a preferred accumulation zone at Rs 1,35,000 per 10 grams, with a short-term target of Rs 1,48,000 and a medium-term target range of Rs 1,60,000-Rs 1,68,000.
The report said that investment demand has remained resilient despite high prices. Global gold ETF holdings increased by around 187 tonnes during August and September 2026, reaching a record 4,256 tonnes, while third-quarter inflows touched a record $31 billion. In India, gold ETF inflows rose 71 per cent month-on-month to Rs 44.5 billion in September, while silver ETFs attracted Rs 19.7 billion of inflows.
Gold surged to a record high of nearly $5,600 per ounce in January 2026 before correcting below $4,000 and subsequently recovering. Silver rallied above $100 per ounce before undergoing an even steeper correction.
Similar volatility was reflected in domestic markets, amplified by fluctuations in the USD/INR exchange rate. Historical trends indicate that festive demand has a stronger correlation with domestic premiums, imports and physical buying volumes than with international price movements.
Diwali and Dhanteras remain among India's most important occasions for precious-metal purchases, supported by traditional buying patterns, the wedding season and the cultural significance of gold and silver.
Historical performance also indicates that gold has generally delivered stronger returns during the 30 days preceding Diwali compared with the subsequent 30 days.
—IANS
aar/pk
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Note: The content of this article is sourced from a news agency and has not been edited by the ap7am team.