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EN
Buy the dip? Gold could fall 8% before hitting USD 5,500, says MOFSL
['Anand P']
Mathrubhumi English
MOFSL's report highlighted a shift in the factors driving gold prices, noting that geopolitical conflicts no longer automatically translate into gains for the precious metal.
MOFSL's report highlighted a shift in the factors driving gold prices, noting that geopolitical conflicts no longer automatically translate into gains for the precious metal.
It has recommended a staggered accumulation strategy for long-term investors, noting "gold could witness a correction of 6-8% from current levels before targeting USD 4,800 (Rs 4,56,564.24), followed by USD 5,500+ (Rs 5,23,146.53) over a 12-15 month horizon."
Until real interest rates begin to fall meaningfully, gold could remain range-bound or face a further 6-8% correction in the near term.
Investors may therefore consider staggered accumulation, buying in tranches on declines rather than attempting to time the market bottom.