Mumbai, Nov 7 (IANS) :
Motilal Oswal Financial Services expects gold prices to shoot up to Rs 63,000 per 10 grams in the medium term, driven by the safe haven demand that stems from uncertainties due to the Israel-Hamas war and also the fact that central banks worldwide are holding on to interest rates. “This year, gold witnessed a roller-coaster ride, providing both bulls and bears an opportunity, which too offered bargain levels for long-term investments.
Aggressive rate hikes by major central banks briefly took the sheen out of bullion. However, recent geopolitical tensions and expectations of a pivot in current monetary policy stance provided strong support to gold prices,” the Motilal Oswal report states. There certainly are some headwinds for the precious metal, like expectations of a soft landing, further rate hikes, ease of geopolitical tensions, and higher real rates. However, risk premium is being priced in gold, from pandemics to Russia-
Ukraine war and the latest Israel-Hamas dispute, the report states. An ease-off in the Middle East dispute and/or continuation of a hawkish stance from the US Fed could weigh on gold prices.
