Motilal Oswal says gold mkt facing fatigue, needs new trigger for direction
This story was originally published at 14:44 IST on 1 July 2025
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MUMBAI – After rising sharply and setting new highs in quick succession, gold prices have remained in a range for a few weeks now without clear direction. Motilal Oswal Wealth Management believes at this stage, one needs to wait for more clarity or a decisive trigger for the precious metal to chart a future course.
In a report, "Gold Bull Run: We Call It Quits...", Motilal Oswal said it has been bullish on gold since 2019. "Throughout this period, we have consistently reiterated our outlook in our Gold Quarterly and annual reports, steadily raising our targets." More recently, gold prices surpassed the wealth manager's anticipated level of INR 98,000 per 10 grams to touch its stated target of INR 102,000 per 10 grams.
Motilal Oswal said factors such as risk premium from geopolitical tension, trade-related uncertainties, expectations of rate cuts, behaviour of dollar index, de-dollarisation trends, and appreciation of the rupee against the dollar that fuelled the gold rally are now fully reflected in the prices. "Some signs of market fatigue are also emerging at these higher levels," the report said.
Gold prices have risen over 30% on year at their peak and "historical data over the past 25 years shows that COMEX gold has never achieved more than 32% returns in a single year," it said. Traders holding long position may consider hedging or exiting on consistent close below INR 96,000 per 10 grams, Motilal Oswal said. End
Reported by Abhijit Doshi
Edited by Ashish Shirke
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