Commodity Talk | Risk-reward for gold not favourable after current rally, buy in staggered manner: Anuj Gupta

economictimes.indiatimes.com:

We recommend long-term investors to accumulate gold in a staggered manner rather than investing in one shot, Anuj Gupta, Head Commodity & Currency, HDFC Securities says. At the current level, the risk-reward is not favourable and a 3% to 5% correction in gold prices is a good opportunity for entering long, he recommends.

It is not often that you see equities, bullion and cryptocurrencies, all doing well at the same time. Do you see some hit in gold if other asset classes continue doing well?

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Traditionally, we have seen that when the equity market performs well, gold underperforms. But looking at the current scenario, safe haven premiums, high liquidity, and the Fed nearing a pivot will keep the gold shining.

What is your target for gold in the medium to long term?

In the long term, we are still bullish on gold, and we anticipate the Comex spot gold can rally towards $2250 and $2300 levels. While in domestic markets, our target for MCX gold is 67,000–67,500. Looking at the medium term, we believe minor corrections are expected in the gold price after the recent rally.

Will investors be able to still make the most of it if they enter at current levels or should one wait for a deeper correction?

We recommend long-term investors to accumulate gold in a staggered manner