In this episode of the State of the Economy podcast, businessline’s Subramani Ra Mancombu talks to Kishor Narne, ED, Motilal Oswal Financial Services Ltd, about the performance and outlook of gold and silver in the global market.
The podcast begins by highlighting the strong performance of gold, which has gained over 10% since the start of the year, and 40% over the past year. Narne explains the factors behind this surge, including geopolitical tensions, global economic uncertainties, and rising demand for safe-haven assets. Despite the strong rally, he suggests that while gold’s upside potential is uncertain, it might reach a ceiling of $3200 per ounce. He also discusses the broader market factors, such as interest rate cuts in 2025, that could continue to influence gold’s movement.
Narne addresses the trend of paper gold, particularly ETFs, and how it has gained traction in Western markets but not as much in Asia. He further discusses consumer reactions in India, where high gold prices have led to lower footfall in jewellry stores, although the wedding season might bring some recovery.
The episode also explores silver, which follows gold’s bullish trend but is also driven by increasing demand from electric vehicle (EV) and green technology sectors.
Narne wraps up by discussing the risks and potential for both gold and silver, including the influence of the dollar and US interest rates.
(Host: Subramani Ra Mancombu Producer: Amitha Rajkumar)
About the State of the Economy podcast
India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders.