Mumbai: A report on Saturday showed that silver could match or outperform gold in the medium to long term, and is likely to reach Rs1,25,000 per kg on MCX and $40 on COMEX in the next 12 to 15 months. 
Recently, silver has shown impressive performance, gaining more than 40% (year-to-date) and breaching Rs1,00,000 on the domestic front, fuelled by safe-haven buying and robust industrial demand, according to the report by Motilal Oswal Financial Services Ltd (MOFSL).
MOFSL has also set targets for gold of Rs81,000 in the medium term and Rs86,000 in the long term. It expects gold to reach $2,830 on COMEX in the medium term and $3,000 in the long term.
&ldquo;(The year) 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 US Presidential Election will be critical in shaping gold&rsquo;s near-term trajectory,&rdquo; said Manav Modi, analyst, commodity research, Motilal Oswal Financial Services.
Two key factors underpinning this year&rsquo;s rally in precious metals are expectations of rate cuts from the Federal Reserve and rising geopolitical tensions, particularly in the Middle East.
&ldquo;Overall, the sentiment for this Diwali is projected to be positive, raising optimism for bullion,&rdquo; Modi said.
Regardless of shifting narratives or market volatility, one constant remains &mdash; gold has historically served as a reliable store of value during uncertain times. 
According to the report, if one had invested in gold during Diwali 2019, they would have enjoyed 103% returns on their domestic gold investments by this Diwali. Since 2011, there have only been two instances (2015 and 2016) where the 30 days leading up to Diwali recorded negative returns.
Aside from 2022, pre-Diwali gains have consistently outpaced post-Diwali gains. &ldquo;We believe that gold has further upside potential wherein any dips could present buying opportunities. According to our recent quarterly report, a correction of 5-7% is plausible and could serve as an accumulation zone,&rdquo; said Modi.
Two key factors underpinning this year&rsquo;s rally in precious metals are Federal Reserve&rsquo;s rate cut expectations and rising geopolitical tensions, particularly in the Middle East.
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&mdash;IANS

Silver has shown impressive performance, breaching Rs1,00,000 on the domestic front

Two key factors are Federal Reserve’s rate cut expectations and rising geopolitical tensions

Silver > gold? May touch ₹1.25 lakh/kg in next 12-15 months

Two key factors are Federal Reserve’s rate cut expectations and rising geopolitical tensions

October 26, 2024 | 20:52 IST