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Below the Quote on Gold Quarterly Outlook by Mr. Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial Services Ltd

Gold Outlook

• For the first 4 months of 2025, Gold has put a fantastic show backed by President Trumps tariff threats and overall uncertainties in market

• Fed cut rates by 100bps last year, but have now again taken a pause signalling concerns regarding inflation and growth

• Inflation has eased and is within Fed’s comfort zone, but loose labour market is concerning

• President Trump is evidently putting a pressure on Governor Powell to cut rates

• Tariff threats from President Trump on China and other economy is increasing uncertainty in market

• Geopolitical tensions have added to the risk premium for gold, further escalation tensions could continue to boost safe haven appeal

• Additionally, along with central bank buying, festive and wedding-related domestic demand could boost sentiments

• Domestic ETF, Imports along with SPDR Holdings and CFTC positions are supporting the case for Bulls

• We could continue to see volatility for Gold this year

• Risky traders can continue to ride this rally , however safe traders can wait for some dip to accumulate for the targets higher

• We continue to recommend “Buying on Dips”

• We feel Gold could inch towards $3350-3500 and consolidate near the same

• However, looking at the momentum, rally towards $3700 over the long term can also not be ruled out

•Assuming USDINR at 85, on domestic front, immediate range is near Rs 96500- 1,00,000

•From a longer term perspective, Rs 1,06,000 could be possible

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