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 Motilal Oswal Financial Services Ltd (MOFSL) has maintained a positive bias for Gold and have revised upward potential target to ?81,000 in the domestic market. It recommends "buy on dips" approach for gold, with advice to accumulate near ?69,000. While on COMEX, MOFSL advise accumulating around $2250 for targets towards $2650.

In its latest report, MOFSL says that Gold started the year steadily, but bullish momentum has picked up significantly, posting gains of around 14% year-to-date in the domestic market. The report also highlights the astounding growth registered by Silver this year, having already gained upward mobility of 27% returns year-to-date in 2024.

Mr. Navneet Damani, Group Senior VP – Commodity Research at Motilal Oswal Financial Services said, “Geopolitical tensions have added to the risk premium for gold as concerns about debt pose long-term challenges to overall growth. The economic indicators from the US continue to show strength in the economy. Additionally, along with central bank buying, festive and wedding-related domestic demand could boost sentiment. It says that although ETF buying is struggling, investment and central bank buying are maintaining strong demand momentum”.

On US FED Rate Cuts

According to MOFSL, market participants are closely watching the US central bank for hints regarding potential interest rate cuts, which has been keeping them on edge. Despite expectations for rate cuts earlier in the year, hawkish comments from Fed officials have tempered those beliefs, leading to a reduction in anticipated rate cuts from over four to approximately two for the year 2024. However, MOFSL believes that probability of a Fed rate cut has shifted gradually from March through May and June, and now to September 2024

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