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Emkay Wealth Management has maintained a positive medium- to long-term outlook on gold and silver, saying the precious metals remain supported by central bank buying, expectations of lower US interest rates and sustained investor demand despite recent bouts of volatility.
The wealth manager said gold, which briefly crossed the $5,000-an-ounce mark earlier this year, is currently trading near $4,500 an ounce, while silver has rebounded from around $72 to about $77 an ounce, reflecting resilient demand even after short-term corrections.
According to Emkay Wealth, the current rally in precious metals differs from previous cycles as it is being driven more by long-term allocation demand than speculative trading activity.
"Gold and silver are being viewed as strategic portfolio assets rather than short-term trading instruments. The current trend is driven more by structural allocation demand than speculative positioning," the firm said.
Emkay Wealth noted that expectations of further rate cuts by the US Federal Reserve could support bullion prices by weakening the dollar and enhancing the appeal of non-yielding assets such as gold. The firm also pointed to continued central bank purchases since 2022 as an important pillar supporting the long-term price outlook.
Silver, meanwhile, is benefiting from growing industrial demand linked to clean energy and manufacturing sectors, while gold continues to attract investors seeking diversification amid concerns over fiscal deficits and currency stability in major economies.
The firm expects gold to remain well supported below $4,000 an ounce, with upside targets of $4,800 and $5,200 an ounce over the medium term. For silver, it sees medium-term upside potential towards $92 and $110 an ounce, although it cautioned that inflation trends, the pace of US rate cuts and movements in the dollar could influence the trajectory of gains.
For investors, Emkay Wealth recommended maintaining existing allocations and using market corrections to deploy fresh capital. New investors should consider a phased approach rather than making lump-sum investments at current levels, it said.
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.
Vivek Choksey, Senior Vice President and Zonal Head–Ahmedabad at Emkay Wealth Management, said 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.
He added that while the sharp gains seen in recent years may moderate, investors can still expect steady long-term returns from precious metals as part of a balanced asset allocation strategy.
Emkay Wealth also advised investors to maintain a minimum investment horizon of three years to help smooth volatility and improve post-tax returns.
The wealth manager said gold, which briefly crossed the $5,000-an-ounce mark earlier this year, is currently trading near $4,500 an ounce, while silver has rebounded from around $72 to about $77 an ounce, reflecting resilient demand even after short-term corrections.
According to Emkay Wealth, the current rally in precious metals differs from previous cycles as it is being driven more by long-term allocation demand than speculative trading activity.
"Gold and silver are being viewed as strategic portfolio assets rather than short-term trading instruments. The current trend is driven more by structural allocation demand than speculative positioning," the firm said.
Emkay Wealth noted that expectations of further rate cuts by the US Federal Reserve could support bullion prices by weakening the dollar and enhancing the appeal of non-yielding assets such as gold. The firm also pointed to continued central bank purchases since 2022 as an important pillar supporting the long-term price outlook.
Silver, meanwhile, is benefiting from growing industrial demand linked to clean energy and manufacturing sectors, while gold continues to attract investors seeking diversification amid concerns over fiscal deficits and currency stability in major economies.
The firm expects gold to remain well supported below $4,000 an ounce, with upside targets of $4,800 and $5,200 an ounce over the medium term. For silver, it sees medium-term upside potential towards $92 and $110 an ounce, although it cautioned that inflation trends, the pace of US rate cuts and movements in the dollar could influence the trajectory of gains.
For investors, Emkay Wealth recommended maintaining existing allocations and using market corrections to deploy fresh capital. New investors should consider a phased approach rather than making lump-sum investments at current levels, it said.
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.
Vivek Choksey, Senior Vice President and Zonal Head–Ahmedabad at Emkay Wealth Management, said 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.
He added that while the sharp gains seen in recent years may moderate, investors can still expect steady long-term returns from precious metals as part of a balanced asset allocation strategy.
Emkay Wealth also advised investors to maintain a minimum investment horizon of three years to help smooth volatility and improve post-tax returns.
