According to reports from CNBC TV18 and Business Standard, gold is currently trading near $4,500 an ounce after briefly crossing the $5,000-an-ounce mark earlier this year, while silver has rebounded from around $72 to about $77 an ounce. The precious metals rally differs from previous cycles as it is being driven more by long-term allocation demand than speculative trading activity. As reported by Emkay Wealth Management, gold and silver are being viewed as strategic portfolio assets rather than short-term trading instruments, with the current trend driven more by structural allocation demand than speculative positioning. The firm noted that the current bull run differs from previous commodity cycles because it is being driven less by speculation and more by long-term portfolio allocation decisions by central banks, institutions and individual investors.
As reported by Emkay Wealth Management, the current rally in precious metals is supported by continued central bank purchases since 2022 and expectations of further rate cuts by the US Federal Reserve. The firm highlighted that since 2022, central banks around the world have been buying gold at one of the fastest paces on record as countries seek to diversify reserves away from the US dollar. Silver is benefiting from growing industrial demand linked to clean energy and manufacturing sectors, with the metal being a critical component in solar panels, electric vehicles, electronics and clean-energy infrastructure. As countries accelerate their energy-transition plans, demand for silver is expected to rise substantially over the coming decade. Gold continues to attract investors seeking diversification amid concerns over fiscal deficits and currency stability in major economies.
According to Emkay Wealth Management, the firm expects gold to remain well supported below $4,000 an ounce, with key support levels at $3,890 and $3,510, while upside targets of $4,800 and $5,200 an ounce over the medium term remain intact. For silver, it sees near-term corrections could extend toward $74 and $62, while medium-term upside targets are seen at $92 and $110 an ounce. The firm cautioned that the pace of gains may be moderated by inflation trends, the trajectory of US rate cuts, and movements in the US Dollar. For existing investors, Emkay Wealth recommends maintaining current allocations and deploying incremental investments on market dips, while investors with elevated gold exposure of 25-30% are advised to review portfolios for potential rebalancing.
As reported by Emkay Wealth Management, the firm suggested gold allocations of 5-10% depending on an investor's risk profile, while overall exposure to precious metals could range between 10% and 15% for moderate investors. Conservative investors may keep allocations lower, while aggressive investors can tactically increase exposure subject to periodic portfolio reviews. The firm advised investors to maintain a minimum investment horizon of three years to help smooth volatility and improve post-tax returns. For new investors, a phased investment approach is recommended, with options including physical gold, gold ETFs, gold and silver funds, structured gold-linked products, and global gold mining funds. Vivek Choksey, Senior Vice President and Zonal Head–Ahmedabad at Emkay Wealth Management, emphasized that gold and silver should continue to form part of a diversified investment portfolio as de-dollarisation trends among central banks and rising industrial demand provide structural support to the asset class.
