According to research released on Saturday, silver is expected to reach Rs 1,25,000 per kg on the MCX and $40 on the COMEX in the next 12 to 15 months, and it may either meet or surpass gold in the medium to long term.

According to a study by Motilal Oswal Financial Services Ltd. (MOFSL), silver has recently performed admirably, rising more than 40% (year-to-date) and surpassing Rs 100,000 on the domestic front due to strong industrial demand and safe-haven purchasing.

Additionally, MOFSL has set medium- and long-term gold objectives of Rs 81,000 and Rs 86,000, respectively. In the medium run, it anticipates that gold will hit $2,830 on COMEX, and in the long run, $3,000 as well.

“A falling rupee, increased demand, market uncertainty, and predictions of rate reduction have all contributed to the strong price surge of 2024. Gold’s short-term course would be significantly influenced by the months after the US presidential election, according to Manav Modi, analyst for commodities research at Motilal Oswal Financial Services.

Rising geopolitical concerns, especially in the Middle East, and anticipation of rate reductions from the Federal Reserve are two major reasons driving this year’s precious metals surge.

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

One thing is clear, regardless of changing narratives or market volatility: gold has always been a dependable store of wealth in unpredictable times. As to the estimate, those who made gold investments during Diwali 2019 would have received 103% returns on their domestic gold investments by this Diwali. The thirty days before Diwali have only yielded negative returns twice since 2011 (in 2015 and 2016).

Pre-Diwali gains have always exceeded post-Diwali gains, with the exception of 2022. “We still think that gold has further upside potential and that any declines might be good times to purchase. A drop of 5–7% is conceivable and may act as an accumulation zone, per our most recent quarterly report,” Modi said.

The Federal Reserve’s anticipated rate decrease and escalating geopolitical concerns, especially in the Middle East, are two major drivers driving this year’s precious metals surge.