Buying gold or silver? Motilal Oswal recommends what to buy, how much to hold as gold hits Rs 1.50 lakh, silver above Rs 3.25 lakh

With gold and silver trading at record levels, investors are once again facing a familiar question – should they buy now, wait for a correction, or rebalance existing holdings? According to Motilal Oswal Financial Services’ latest precious metals weekly report, the sharp rally in both metals is not a short-lived spike but the result of deep-rooted global risks that continue to favour safe-haven assets. According to the brokerage, the recent surge in gold and silver prices is being fuelled by a combination of rising geopolitical tensions, uncertainty around economic policy and growing concerns about the pace of global growth. Investors are increasingly looking for the security of physical assets as risks continue to be high. At 5:30 pm on January 20, 2025, MCX gold was trading at Rs 1,50,250 per 10 grams, reflecting this trend, while MCX silver was valued at Rs 3,25,411 per kg, highlighting the impetus behind the recent rise.

Motilal Oswal notes that safe-haven demand remains the dominant force behind the rise in precious metals. With politics and policy choices having a greater influence on market movements, many investors are leaning towards physical assets as a way to safeguard their wealth, rather than relying solely on traditional financial investments.

Motilal Oswal says gold has picked up strong momentum after moving out of a long phase of sideways trading, a sign that the upward trend is firmly back in place. This shift has also drawn fresh buying interest into the market.

However, the brokerage cautions investors against rushing in at higher levels. Instead, it suggests buying on declines. According to the report, demand could resurface around Rs 1,43,000, with Rs 1,40,000 acting as a strong support zone. As long as prices stay above this band, the overall outlook for gold remains positive. Any short-term dip, the report adds, should be viewed as a healthy pause in an ongoing uptrend, not as a signal that the rally is ending.

Silver has outperformed gold in recent weeks, delivering a sharp upward move. Motilal Oswal points out that silver prices have strengthened within a rising channel, with higher highs and higher lows clearly visible.

Despite the sharp run-up, the report does not see signs that the rally is running out of steam. Buying silver on dips around Rs 2,95,000 is the recommended strategy; Rs 2,80,000 is seen as a critical support level. Motilal Oswal thinks the overall silver trend is still quite bullish as long as this floor holds.

Motilal Oswal stresses that gold and silver should be approached as portfolio stabilisers rather than speculative trades.

At a time when market volatility is being shaped more by political developments and institutional uncertainty, precious metals are emerging as a useful source of diversification and downside protection.