Gold Prices May Correct Before Rallying to $5,500: Motilal Oswal Report

Gold prices may see a correction of up to 8% in the near term before resuming their rally towards $5,500 over the next 12-15 months. According to Motilal Oswal Financial Services Ltd. (MOFSL), gold's long-term investment case remains intact but requires patience from investors.

The report highlights a shift in the factors driving gold prices, noting that geopolitical conflicts no longer automatically translate into gains for the precious metal. Instead, inflation concerns and interest rates have become key drivers of gold prices.

MOFSL recommends a staggered accumulation strategy for long-term investors, advising them to buy in tranches on declines rather than attempting to time the market bottom. This approach is particularly relevant given the current market conditions, where real Treasury yields are high and gold's safe-haven appeal has weakened.