Gold may correct 6-8% before rallying to USD 5,500+,over 12-15 months: Report

Motilal Oswal Financial Services Ltd. (MOFSL) expects gold to pull back as much as 8% in the near term before resuming its rally toward USD 5,500 over the next 12–15 months, according to its H1 2026 Precious Metals Outlook. The brokerage says the drivers behind gold have shifted: geopolitical conflicts no longer automatically translate into higher prices. It recommends investors use a staggered accumulation approach rather than trying to time a bottom. MOFSL notes gold could first correct 6–8% from current levels, then target USD 4,800, before reaching USD 5,500+. The report cites weaker “safe-haven” demand tied to higher-for-longer rates, driven by inflation concerns from tariffs and the US-Iran situation, raising real Treasury yields and the US dollar. It also flags Fed policy direction and US inflation as key variables. For silver, it warns of higher volatility due to its dual precious-and-industrial role linked to electrification demand.