The brokerage said bullion’s uptrend has been uneven, with prices moving in a zig-zag pattern amid global uncertainties rather than a steady rally. It attributed the gains to a mix of geopolitical tensions, slowing global growth concerns and shifting expectations around US monetary policy, all of which have supported safe-haven demand.
Despite the rise in prices, physical demand in India has stayed subdued due to elevated rates, while investment demand—particularly through exchange-traded funds—has remained relatively resilient.
How to invest now
Motilal Oswal Financial Services recommends a “buy on dips” strategy rather than chasing prices at higher levels, citing the likelihood of near-term consolidation after the recent rally.
The firm said investors can consider multiple routes, including gold and silver ETFs, exchange-traded derivatives and physical bullion, with a gradual shift visible towards financial instruments over traditional buying.
It added that while near-term headwinds such as a strong dollar, elevated bond yields and persistent inflation could weigh on prices, the broader outlook remains constructive. Factors such as geopolitical risks, high global debt levels and the possibility of monetary easing later in the year are expected to support bullion over the medium to long term.
Historically, the brokerage noted, gold has delivered steady long-term returns, making periodic corrections an opportunity for accumulation rather than a signal to exit.