MOFSL Warns of 6-8% Gold Price Correction Amid Rising US Inflation

The recent performance of gold has been impressive for investors, but Motilal Oswal Financial Services (MOFSL) suggests rethinking investment strategies. The brokerage firm recommends a gradual investment approach rather than lump sums during bull markets.

Gone are the days when gold prices were solely influenced by geopolitical tensions. Current market trends show that US inflation, interest rates, and real yields also significantly impact gold prices.

MOFSL advises long-term investors to refrain from making large investments at once and instead invest gradually across various price points. The brokerage predicts a potential 6% to 8% decrease in gold prices followed by a price rally within the next 12 to 15 months.

The ideal buying range for Indian investors is between Rs 1.30 lakh and Rs 1.33 lakh per 10 grams, with a medium-term target of Rs 1.68 lakh and eventually aiming for Rs 1.93 lakh per 10 grams.