Silver May Touch Rs 1.25 Lakh A Kg: Motilal Oswal

Silver could either match or outperform gold in the medium to long term and is likely to reach Rs 1,25,000 per kg on MCX and $40 on COMEX in the next 12 to 15 months, a report showed

Recently, silver has shown impressive performance, gaining more than 40 per cent (year-to-date) and breaching Rs 100,000 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 Rs 81,000 in the medium term and Rs 86,000 in the long term. It expects gold to reach $2,830 on COMEX in the medium term and $3,000 in the long term.

"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's near-term trajectory," said Manav Modi, analyst, commodity research, Motilal Oswal Financial Services.

Two key factors underpinning this year’s rally in precious metals are expectations of rate cuts from the Federal Reserve and rising geopolitical tensions, particularly in the Middle East.

"Overall, the sentiment for this Diwali is projected to be positive, raising optimism for bullion," Modi said.

Regardless of shifting narratives or market volatility, one constant remains -- gold has historically served as a reliable store of value during uncertain times.