Gold Price Surge Not Temporary, Says Motilal Oswal; Long-Term Uptrend Likely
Gold prices have witnessed a sharp rise over the past year, especially in the last six months, both in India and the global market. The unexpected surge has come as a shock to many middle-class families, who are now hoping for a major correction in prices. However, leading brokerage firm Motilal Oswal Financial Services states that the increase in gold prices is not temporary but a structural shift in the global economy.
In its recent report, the firm noted that if the rise were temporary, prices would have fallen as quickly as they climbed. Instead, gold prices have shown only mild corrections, indicating a long-term structural change. Ongoing geopolitical tensions such as the Russia-Ukraine conflict, Iran-Israel tensions, strained US-Russia relations, and trade conflicts triggered by former US President Donald Trump have increased global economic uncertainty.
Due to these risks, central banks across the world have been reducing dollar reserves and increasing gold holdings. In recent years, central banks have purchased gold at record levels, significantly altering the global gold demand pattern. According to the report, gold has now evolved from being a short-term safe haven asset to a long-term strategic investment.
Experts suggest that investors may consider accumulating gold gradually whenever funds are available, regardless of short-term price fluctuations, as the broader trend remains strong.
Disclaimer: The views and recommendations mentioned above are those of individual analysts and brokerage firms. This article is for informational purposes only and does not constitute investment advice. Investors are advised to consult authorized financial advisors before making any investment decisions.
