Gold and Silver Outlook: Bullish for 18-24 Months

Gold and silver prices remain fundamentally strong for the next 18 to 24 months, according to Kishore Narne, Director, Head – Commodity, Motilal Oswal Financial Services. However, short-term volatility and minor corrections are likely due to the recent sharp rally, Narne told NDTV Profit on Monday, Oct. 20.

Fundamental Factors Supporting Gold and Silver

During an interview on the occasion of Diwali, Narne said, ‘I think fundamentally if you’re looking at the next 18 months, or 24 months, the scenario has not changed much. Most of the fundamental factors which are supporting both gold and silver continue to underpin the rally.’ These factors include geopolitical uncertainty, global economic slowdown, and central bank actions.

Short-Term Volatility and Correction

However, he predicted that short-term volatility may lead to a correction in gold prices by Rs 3,000–Rs 4,000, and silver by Rs 5,000–Rs 6,000. ‘It’s not a big deal when you are dealing with a commodity that is trading at around Rs 1,25,000. So, another 3-4% is not a big deal. For silver again, I think Rs 5,000 to Rs 6,000 further corrections could be possible. But again, this is a short-term noise…,’ Narne said.

Long-Term Outlook and Investment Strategy

He further emphasised that the long-term outlook remains positive, supported by consistent fundamental factors. On current trends, he suggested that gold is a good buy around Rs 1,20,000 to Rs 1,25,000 levels, even if prices correct slightly. For silver, he sees Rs 1,48,000 to Rs 1,50,000 as a strong entry point. ‘So for gold, anything close to Rs 1,20,000-1,25,000 is a good level to buy. Again, that’s around Rs 5,000-6,000, close to what it is trading right now. Silver is much more bullish than gold, again in an 18-month time frame. For silver, anything close to Rs 1,48,000-1,50,000 is a good level to buy…,’ he added.

Investment Advice for Long-Term Investors

Narne also advised long-term investors not to worry about small price differences, as timing the market is tough, especially with ongoing global uncertainty. ‘So, I think with this kind of geopolitical uncertainty, rather than timing the market, actually stay invested and probably put a percentage of your portfolio into the asset class rather than trying to time the market,’ he advised.

For investors looking to invest in gold and silver, it’s essential to have a long-term perspective and not get affected by short-term volatility. As Narne said, ‘It’s not a big deal when you are dealing with a commodity that is trading at around Rs 1,25,000. So, another 3-4% is not a big deal.’ Instead, focus on the fundamental factors supporting the rally and stay invested for the long term.

Conclusion

In conclusion, gold and silver prices are expected to remain strong for the next 18-24 months, despite short-term volatility and minor corrections. Long-term investors should focus on the fundamental factors supporting the rally and stay invested, rather than trying to time the market. With the right investment strategy and a long-term perspective, investors can benefit from the bullish outlook for gold and silver.

For more information on investing in gold and silver, visit our website and learn about the benefits of investing in gold and benefits of investing in silver. Stay up-to-date with the latest news and updates on the commodity market and make informed investment decisions.