Gold prices may correct by 5-7% before the next leg up: Motilal Oswal

New Delhi [India], October 5 (ANI): The gold prices could see some consolidation near the recent highs, Motilal Oswal said in a report as its prices hit a fresh all-time high of Rs 78,450 (per 10 gram).
The wealth management firm says that the gold will see a correction ranging from 5 to 7 per cent as historically, it has never added gains of 32 per cent in any year since 2000.
"We expect gold to correct by 5-7 per cent, before the next leg up," the report added.
As per the report, the US presidential election next month could add further spice to the market. The domestic exchange-traded fund (ETF), imports along with SPDR Holdings and CFTC positions are supporting the case for Bulls.
Citing major reasons behind the recent surge, the report mentions that in the 9 months of 2024, the US Federal Reserve's stance and geopolitical intentions have pushed the gold prices around the globe.
Going further, it adds that gold buying from the central bank, festive and wedding-related domestic demand will boost the sentiments in the market.
As per the report of the firm, over the next 2 years, gold will hit the levels of Rs 86,000 (per 10 gram).
Gold prices are on an upward trajectory backed by firm demand, and the steam seems to remain till the end of this festival season.
As per the various reports and experts, the rural demand, in particular, is showing signs of recovery. With an improved monsoon season and higher crop sowing this year, rural economic conditions are set to strengthen, which is anticipated to drive increased gold purchases, especially during the festive period.
Gold demand in India has remained robust, particularly following an initial surge after the import duty cut.
Indian gold exchange-traded funds (ETFs) have witnessed a surge in investor interest since the import duty cut and changes to long-term capital gains tax for gold ETFs were announced in the Union Budget. (ANI)