Kolkata: After a brief pause following the election of the US President in November 2024, gold and silver prices have been on a northward march once again and a few factors have contributed to prices of both precious metals rising to peak levels in March. IBJA (India Bullion and Jewellers Association) show silver prices to have crossed the psychological Rs 1 lakh/kg landmark while gold prices have moved to kissing distance of Rs 90,000/10 grams.
By the way, both these metal attract a 3% tax and, therefore, for the buyer the prices are far beyond Rs 1 lakh and Rs 90,000 for silver and gold respectively. The inevitable question is, what will the investor do? Will a common investor sell some holdings to book profits, keep on buying in anticipation that the prices will rise further this year or just hold their positions?
Motilal Oswal’s advice
Prominent Indian brokerage house Motilal Oswal Financial Services believes that there is potential for both the precious metals to appreciate this year. Therefore, its clear advice — buy on dips. Like many other analysts, Motilal Oswal is of the opinion that there might be some consolidation of prices but the general trend will remain positive for both metals this year, which underlines its recommendation.
It is common knowledge that a weaker US dollar would prompt a rise in gold prices. The recent move by the German parliament that put its seal on a spending surge saw the US Dollar weaken against the Euro. The demand of gold as a safe haven asset rose after the trade tension following the tariff retaliation by US President Donald Trump heightened. The taming of US inflation in February has also triggered some enthusiasm about a rate cut by the US Fed, which further pushed up the gold prices.
Another factor has been the buying trend of central banks around the world. Many experts think many central banks will be bullish on gold. Moreover, the Chinese market improving could also mean fresh buying interest from the second largest economy in the world.
Both gold and silver prices have surged to all-time highs fueled by trade war apprehensions, weak US dollar and also a section of the market hoping for a small Fed rate cut. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
