Gold Prices May Correct Up to 8% Before Rallying to $5,500: Motilal Oswal

Gold prices may be due for a correction of up to 8% in the near term, according to Motilal Oswal Financial Services Ltd. (MOFSL), before resuming their rally towards USD 5,500 over the next 12-15 months.

The brokerage house recommends investors adopt a staggered accumulation strategy and remain patient, noting that gold's long-term investment case remains intact but requires patience in the coming year.

Gold started 2026 strongly on tariff uncertainty, robust ETF inflows, central bank buying, and expectations of US Fed rate cuts. However, the narrative shifted in Q2 as tariffs and the US-Iran conflict fueled inflation concerns, prompting markets to price in higher-for-longer rates, lifting real Treasury yields, and weakening gold's safe-haven appeal.

MOTSL identifies accumulation levels between Rs 1,33,000-Rs 1,30,000 with medium-term targets of Rs 1,68,000 followed by Rs 1,93,000, assuming USD/INR at 95.5.