Motilal Oswal Predicts Silver to Outperform Gold Amid Strong 2024 Returns

Silver has delivered thirty-five percent returns in the first nine months of 2024, surpassing gold's thirty percent. Motilal Oswal Financial Services remains optimistic about silver, suggesting it could continue to outperform gold in the near term. Navneet Damani, head of research for commodities and currencies, highlighted silver's safe-haven appeal, which has driven its growth, along with a recovery in industrial demand and a supply deficit. Meanwhile, gold remains stable, supported by its own safe-haven appeal and recent U.S. Federal Reserve rate cuts.

Motilal Oswal has revised its twelve-month target for gold to eighty-one thousand INR per ten grams domestically and $2,820 to $2,830 per ounce on COMEX. In the long term, they expect gold to reach eighty-six thousand INR domestically and $3,000 per ounce. Damani noted that geopolitical tensions could push prices higher sooner, though downside risks include easing conflicts in West Asia or changes in Federal Reserve policy.

For silver, Motilal Oswal sees a favorable buying level at eighty-six thousand INR per kilogram, with prices expected to exceed one hundred thousand INR over the next twelve months, driven by Chinese stimulus measures and continued support for industrial metals.

Regarding crude oil, Shweta Shah, energy analyst at Motilal Oswal, noted price volatility driven by tensions in West Asia, predicting that WTI prices could drop if tensions ease. Industrial metals are also showing positive momentum due to supply constraints and expected interest rate cuts, with zinc leading in price gains this year.