Emkay Wealth Sees Gold Well Supported at Current Levels by Emkay Wealth Management
According to Emkay Wealth Management precious metals continue to remain well supported despite intermittent volatility driven by geopolitical tensions in the Middle East and sustained strength in the US Dollar.
Gold, after briefly crossing levels above US$ 5,000, is currently trading near US$ 4,500. Silver has similarly rebounded from about US$ 72 to around US$ 77, reflecting continued underlying demand despite short-term corrections.
Emkay Wealth said the medium- to long-term outlook for both metals remains constructive, supported by macroeconomic uncertainty, sustained central bank accumulation, and steady institutional allocation flows.
“Gold and silver are increasingly being viewed as strategic portfolio assets rather than short-term trading instruments. The current trend is driven more by structural allocation demand than speculative positioning,” Emkay Wealth Management said.
The firm highlighted that its gold fund recommendations were initiated in FY22–23 and reiterated through FY23–24 and FY24–25, while silver fund allocations were introduced from February 2025. Investors maintaining exposure over this period have benefited from both price appreciation and currency depreciation.
Structural Drivers Remain Intact
According to Emkay Wealth, expectations of further US Federal Reserve rate cuts remain a key support factor, as they could weaken the US Dollar and improve bullion attractiveness. Continued central bank buying since 2022 has further strengthened the long-term price base.
Both gold and silver have also seen a multi-year technical breakout following nearly a decade of consolidation, reinforcing the broader bullish structure. Silver additionally benefits from rising industrial demand linked to clean energy transition and manufacturing applications, while gold continues to gain traction as a diversification hedge amid concerns over US fiscal and currency stability.
Unlike previous cycles dominated by speculative flows, the current rally is largely allocation-driven, which enhances its sustainability, the firm noted.
Outlook and Key Levels
Emkay Wealth expects strong support for gold below US$ 4,000, with key levels at US$ 3,890 and US$ 3,510. Upside targets remain at US$ 4,800 and US$ 5,200.
For silver, near-term corrections could extend toward US$ 74 and US$ 62, while medium-term upside targets are seen at US$ 92 and US$ 110.
However, the firm cautioned that the pace of gains may be moderated by inflation trends, the trajectory of US rate cuts, and movements in the US Dollar.
Investor Strategy
For existing investors, Emkay Wealth recommends maintaining current allocations and deploying incremental investments on market dips. Investors with elevated gold exposure of 25–30% are advised to review portfolios for potential rebalancing.
For new investors, a phased investment approach is recommended, with gold allocation of 5–10% depending on risk profile. Options include physical gold, gold ETFs, gold and silver funds, structured gold-linked products, and global gold mining funds.
“Gold and silver should always be a part of an overall portfolio allocation… As precious metals are now evolving in terms of its investment perspective both on de dollarization of reserves across central banks world over and actual usage from consumption and industrial demand…Both warrant a position in the portfolio between 10-15 percent in terms of allocation and the returns expectation should rationalize after a break out run in them to 9-10 percent p.a” Mr. Vivek Choksey Senior Vice President & Zonal Head – Ahmedabad, Emkay Wealth Management
Allocation guidance varies by risk appetite: conservative investors up to 5%, moderate investors 10–15%, and aggressive investors up to 20% or more on a tactical basis, subject to periodic review.
The firm also emphasized a minimum investment horizon of three years to optimise post-tax returns and reduce volatility impact.
Gold and silver continue to play an important role as portfolio diversifiers in an uncertain macro environment. Investors should remain disciplined in allocation rather than reacting to short-term price movements Emkay Wealth noted.
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